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CHAPTER: Supply chain digitization
UNIT: Information management and optimization
Capsule title The role of logistics experts
Capsule number 3.1.1
To do before this capsule: Chapters 1 and 2, along with the pretest to
recognize students' fundamentals before
introducing the content of Chapter 3.
Capsule linked with: All the capsules of Unit 1 of this chapter are
related, as an introduction to the digital tools and
operation models presented in Units 2 and 3.
Authors: AFT, member of the DigInLogs Consortium
This project has been funded with support from the European Commission. This presentation reflects the views
only of the author, and the Commission cannot be held responsible for any use which may be made of the
information contained therein.
2
Capsule target
Specific learning outcomes: Present the definition of logistics and its natural
extension towards the use of technologies, and in
particular digital ones.
Capsule category: Online learning
Modality: Individual work
Exercises included: Yeah
Estimated completion time: 00:30
3
table of Contents
YO.Evolution of logistics in recent decades
II.The optimization process
III.Added value of technologies
4
Instructions
This capsule was developed as an e-learning format, with animated messages and content. Please
take the time to listen to all the messages provided and progress at your speed to understand all the
content provided.
When searching for a definition or additional content, click the following icon:
A small message box will open to provide additional information.
You will be required to pass a short test embedded at the end of the capsule to confirm your understanding
of the content provided and progress to the next topics in this unit.
In case of doubt or difficulties, you can contact your teacher or use the contact details of the DigInLogs
consortium team.
5
Introduction
Logistics is the management of the flow of goods between the point of origin and the point of
destination to satisfy customer and company requirements. Logistics covers all goods flows, from
the extraction of raw materials, through the manufacturing process and to the end customer.
Therefore, to carry out those operations, professionals dedicated to managing these various
activities along the supply chain must manipulate a lot of information to be as efficient as possible.
Your final objective, whatever the operation to be supervised, will be to aim for the most optimal point among the
following 3 objectives:
Costs
Quality Time 6
Introduction
Logistics professionals cover very different activities and experience in the supply chain, but they
need a similar skill set to master their operations.
This capsule aims to detail the evolving roles and effectiveness of logisticians, and how they have
come to link their operations so closely to the digital environment over the last decade.
Starting from its search for optimization margins as a systematic approach, we will expand the
different ways in which digital technologies have added value to the evolution of this sector until
placing logisticians and supply chain managers in a strategic position of companies. biggest in the
world.
7
Evolution of logistics in recent decades
The term "logistics" has been officially used in English since 1846 and comes from the French soldier
and writer Antoine-Henri Jomini, who popularized it as "logistics" in his summary of the Art of War
(Précis de l'Art de la Guerre).
However, the concept has existed since ancient times, from the practices and modernization of
military tactics to the design of a fully functional supply line for troops to overcome battles.
8
Evolution of logistics in recent decades
The logistics experience was first about moving materials and goods, therefore dealing with
physical flow.
To better manage these goods, it is necessary to collect information to optimize operations, such as
knowing the pick-up or delivery time, securing space for storage, ensuring stock availability for sales
marketing strategy, etc.
It is combined with the flow of information, as important or more important, that will guarantee the efficiency of each
process.
Physical flow
Information flow
Economic flow
Finally, the economic flow also contributes to efficient logistics, as it is key for any business, since
transport and logistics actors will control and monitor the value of each step, payment transfers,
etc. 9
Evolution of logistics in recent decades
Over the last few centuries, logistics has gained efficiency in various aspects of company
functionalities. Its role is to find all aspects of optimization that are possible within a given
environment, from the transportation and movements of goods and people to their cost
implications.
Management of the
time
Control of
costs
Product
Service to
customer
Availability
cash
Margins
More recently, the rapid expansion of Internet and e-commerce business models has raised another
key factor in the equation: instead of simply tracking all information from a business management
point of view, traceability and transparency of operations towards end customers.
10
Evolution of logistics in recent decades
Little by little, what was previously the responsibility of other profiles or services is becoming a
dedicated specialty: flow management and optimization.
Goods People Data
Whether it is the movement of goods, people, information or currency, the profiles of logisticians
naturally appeared for the first time in transportation activities.
eleven
Evolution of logistics in recent decades
Then, all operations related to the movement of goods were included in the field of "logistics",
which today covers almost all movements from point A to point B, but also inventories, purchases,
planning and projections of goods. sales, etc.
…
Logistics operations have evolved into global supply chain management, where it is essential, even
critical, to master data to optimize operations, margins and resource utilization.
12
Evolution of logistics in recent decades
This diagram presents the evolution of logistics in the global supply chain environment to progressively expand its perimeter and its
performance in serving the purpose of companies.
13
Evolution of logistics in recent decades
This diagram shows the evolution of all concepts related to logistics management, supply chain and integration.1r4technology day.
Evolution of logistics in recent decades
Logistics requires the manipulation of all available data to make the most of the physical resources
that are to be transferred throughout the supply chain, from the collection of raw materials to
delivery to the end customer, through industrial processes and of services around the finished
product.
The more information that is made available to logistics operators, the better it will help them make
the right decisions in terms of organization, action and cost monitoring.
In that sense, the amount of information available to modern business actors has increased
significantly in recent years, thanks to the development of the Internet and all its related
technologies. Now it is possible to better understand internal movements and all possible actions
within the company and know more about our customers and the purchasing decisions they are
about to make.
fifteen
Evolution of logistics in recent decades
Transportation and
selection of
mode KPI analysis
Choice of the
organization
Knowledge of
behavior of
customer
16
The optimization process
Seventh level
To understand when and why digital tools are so closely related to logistics opePersonalization of services and
to retrace and understand the optimization proc- ess.
rations, it is important
- environmental impact
monitoring
Sixth level Expansion of delivery options
(omnichannel)
Fifth level
Add value to services
Analyze activities to prevent or avoid
waste
Fourth level
Third level Service development
Second level Cost reduction
TO b
First level Management of all movements
goods
17
The optimization process
Internet of
st
WandYopthimandeithergo
neitherrvandhestep of evolution logisticians have had to use the available tools andintea
their work and assist them on providing the most efficient service to themgsspecdiviganditacyouoryesyespttoeitherramandand
teacRCheithernandiq
xior
onanddyesandtdeitherispyeseitheror
Yeahp
tivpeithereitheryesrfitsick and
lprryeseither:decision process
tr
hinr
assisted
Digitization of practices
Sixth level
Fifth level Supply Chain Optimization Methods
Fourth level Purchasing and planning software
Third level Additional equipment
and automation
Second level Improved equipment
functionalities
First level Basic operations equipment
18
Added value of technologies
Technologies can take various forms to support the evolution of processes, in order to increase the
efficiency, performance or impact of a business model.
We can divide the different benefits of technologies into 4 categories, depending on the needs of a
company and its management:
Automation Performance
Quality Impact
19
Added value of technologies
Automation
- Any task that is complex, laborious and time-consuming when performed by human operators
will benefit from an automation process in which effort, risk of errors or incidents are reduced.
- The goal of automation is to reduce redundant and unnecessary thought processing time so
that human operations can focus on value-added tasks.
- Automation can support physical operations to reduce effort and risk for operators (i.e. conveyor
belt, exoskeleton, etc.)
- Automation can support intellectual processing tasks that can be simplified with algorithms and
ergonomic solutions (i.e., assisted tools for data entry, interconnected software for data
retrieval, etc.)
- Automation can also provide insights into decision-making processes, by collecting evidence and
accumulating experience (i.e. simulation tools, alert detection systems, etc.)
twenty
Added value of technologies
Performance
Improving the performance of a specific process is determined by the ability to consume fewer
resources by doing more. The factors that will support this revised process can be many, such as
reviewing the quality of the materials, their size, their quantity, the way of processing itself, etc.
The amount of energy involved in optimizing a process and improving its performance must also be
taken into account in the balance, since if it takes months to improve, a process that only takes a
few minutes to complete will probably not give you the gains you would expect before. a long
period of time.
Ergonomics
Quality of
the cats
Availability
From the data
Ability
Analysis
twenty-one
Added value of technologies
Quality
The quality of products, processing or service also provides important levers for improvement.
Logistics specialists can simultaneously work on product robustness, service reliability or precision
to respond to specific needs.
Therefore, technologies will support these aspects either through better market analysis, better
industrial equipment to perform some tasks with a better quality standard or mastery of all the
information that passes through the processes to anticipate risks. and delays.
Tools that ensure control of all constraints and requirements of an operation can greatly improve
the overall quality of service. They will avoid errors due to lack of attention or complexity of a
specific operation and will alert decision makers in the process.
22
Added value of technologies
Impact
The impact of operations can affect numerous factors such as the company's brand image,
relationship with other stakeholders in the supply chain, and the environment.
Nowadays it is increasingly critical to feel concerned about the impact of a company on its general
environment.
Take into account the capabilities of other partners to increase the production and distribution of
products, ensure that product standards conform to market expectations (both in terms of
regulations and consumer habits) or prevent the overall impact of the chain of supply in biodiversity
and resource depletion is an important evolution of our societies.
Modern technologies can also support in this sense a more complex factor analysis mechanism and
assisted decision-making software: Internet of Things, artificial intelligence, etc. They will cross
multiple factors into one equation to provide a better decision based on data evidence.
23
Added value of technologies
Technologies will provide logisticians with a wide set of possibilities to support their role within a
company and contribute to the optimization of its operations.
All examples and technology solutions aim to provide similar services and functionality, but require
a dedicated and specific environment to function at their best. There is no one-size-fits-all solution.
However, they will adapt and be compatible with all logistics operations, that is, with all flows of
goods, information or currencies.
All these evolutions of tools, equipment and infrastructure are supported by software and digital
solutions, now capable of interacting independently with each other, so that the interaction with
human beings is reduced to a minimum and is related to the strategy or capacity of business.
It is important to note that each of these technologies is only a means to an end, while the purpose
and intent of the stakeholders using them will reap the benefits for the company.
24
Capsule validation questionnaire
Now you will have to answer 5 questions about the content of this
capsule to check your understanding.
Each correct answer is worth 1 point.
You will need a score above 80% to pass.
25
Self-assessment questionnaire
Question #1:
When did the concept of business logistics first emerge?
1970s
1980s
1990s
2000s
Self-assessment questionnaire
Question n°2:
What are the latest objectives for efficient logistics performance?
Customer service and data protection
Data quantity and quality analysis
Optimization of costs and benefits
Transparency and traceability
Self-evaluation quiz
Question n°3:
In terms of objectives, what is the ultimate logistics performance level?
Digitalisation of services
Omnichannel and expansion of services
Adding value to services thanks to logistics operations
Individual customer service and environment preservation
Self-assessment questionnaire
Question n°4:
Which of the following technologies support logistics performance objectives?
ALL
Many possible responses
Handling equipment
warehouses
Vehicles
Data management software Robots and cobots
Automated vehicles and
guided
Artificial intelligence
Models and methods of
organization
Smart cameras
Self-assessment questionnaire
Question n°5:
What is the common experience of all logistics specialists?
Flow management and optimization
Data management and optimization
Management and optimization of services
Optimization and performance of services
Added value of technologies
Retry?
Validate and exit the capsule
31
Management and optimization of information flows-EN.pdf

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Management and optimization of information flows-EN.pdf

  • 1. Translated from Spanish to English - www.onlinedoctranslator.com
  • 2. CHAPTER: Supply chain digitization UNIT: Information management and optimization Capsule title The role of logistics experts Capsule number 3.1.1 To do before this capsule: Chapters 1 and 2, along with the pretest to recognize students' fundamentals before introducing the content of Chapter 3. Capsule linked with: All the capsules of Unit 1 of this chapter are related, as an introduction to the digital tools and operation models presented in Units 2 and 3. Authors: AFT, member of the DigInLogs Consortium This project has been funded with support from the European Commission. This presentation reflects the views only of the author, and the Commission cannot be held responsible for any use which may be made of the information contained therein. 2
  • 3. Capsule target Specific learning outcomes: Present the definition of logistics and its natural extension towards the use of technologies, and in particular digital ones. Capsule category: Online learning Modality: Individual work Exercises included: Yeah Estimated completion time: 00:30 3
  • 4. table of Contents YO.Evolution of logistics in recent decades II.The optimization process III.Added value of technologies 4
  • 5. Instructions This capsule was developed as an e-learning format, with animated messages and content. Please take the time to listen to all the messages provided and progress at your speed to understand all the content provided. When searching for a definition or additional content, click the following icon: A small message box will open to provide additional information. You will be required to pass a short test embedded at the end of the capsule to confirm your understanding of the content provided and progress to the next topics in this unit. In case of doubt or difficulties, you can contact your teacher or use the contact details of the DigInLogs consortium team. 5
  • 6. Introduction Logistics is the management of the flow of goods between the point of origin and the point of destination to satisfy customer and company requirements. Logistics covers all goods flows, from the extraction of raw materials, through the manufacturing process and to the end customer. Therefore, to carry out those operations, professionals dedicated to managing these various activities along the supply chain must manipulate a lot of information to be as efficient as possible. Your final objective, whatever the operation to be supervised, will be to aim for the most optimal point among the following 3 objectives: Costs Quality Time 6
  • 7. Introduction Logistics professionals cover very different activities and experience in the supply chain, but they need a similar skill set to master their operations. This capsule aims to detail the evolving roles and effectiveness of logisticians, and how they have come to link their operations so closely to the digital environment over the last decade. Starting from its search for optimization margins as a systematic approach, we will expand the different ways in which digital technologies have added value to the evolution of this sector until placing logisticians and supply chain managers in a strategic position of companies. biggest in the world. 7
  • 8. Evolution of logistics in recent decades The term "logistics" has been officially used in English since 1846 and comes from the French soldier and writer Antoine-Henri Jomini, who popularized it as "logistics" in his summary of the Art of War (Précis de l'Art de la Guerre). However, the concept has existed since ancient times, from the practices and modernization of military tactics to the design of a fully functional supply line for troops to overcome battles. 8
  • 9. Evolution of logistics in recent decades The logistics experience was first about moving materials and goods, therefore dealing with physical flow. To better manage these goods, it is necessary to collect information to optimize operations, such as knowing the pick-up or delivery time, securing space for storage, ensuring stock availability for sales marketing strategy, etc. It is combined with the flow of information, as important or more important, that will guarantee the efficiency of each process. Physical flow Information flow Economic flow Finally, the economic flow also contributes to efficient logistics, as it is key for any business, since transport and logistics actors will control and monitor the value of each step, payment transfers, etc. 9
  • 10. Evolution of logistics in recent decades Over the last few centuries, logistics has gained efficiency in various aspects of company functionalities. Its role is to find all aspects of optimization that are possible within a given environment, from the transportation and movements of goods and people to their cost implications. Management of the time Control of costs Product Service to customer Availability cash Margins More recently, the rapid expansion of Internet and e-commerce business models has raised another key factor in the equation: instead of simply tracking all information from a business management point of view, traceability and transparency of operations towards end customers. 10
  • 11. Evolution of logistics in recent decades Little by little, what was previously the responsibility of other profiles or services is becoming a dedicated specialty: flow management and optimization. Goods People Data Whether it is the movement of goods, people, information or currency, the profiles of logisticians naturally appeared for the first time in transportation activities. eleven
  • 12. Evolution of logistics in recent decades Then, all operations related to the movement of goods were included in the field of "logistics", which today covers almost all movements from point A to point B, but also inventories, purchases, planning and projections of goods. sales, etc. … Logistics operations have evolved into global supply chain management, where it is essential, even critical, to master data to optimize operations, margins and resource utilization. 12
  • 13. Evolution of logistics in recent decades This diagram presents the evolution of logistics in the global supply chain environment to progressively expand its perimeter and its performance in serving the purpose of companies. 13
  • 14. Evolution of logistics in recent decades This diagram shows the evolution of all concepts related to logistics management, supply chain and integration.1r4technology day.
  • 15. Evolution of logistics in recent decades Logistics requires the manipulation of all available data to make the most of the physical resources that are to be transferred throughout the supply chain, from the collection of raw materials to delivery to the end customer, through industrial processes and of services around the finished product. The more information that is made available to logistics operators, the better it will help them make the right decisions in terms of organization, action and cost monitoring. In that sense, the amount of information available to modern business actors has increased significantly in recent years, thanks to the development of the Internet and all its related technologies. Now it is possible to better understand internal movements and all possible actions within the company and know more about our customers and the purchasing decisions they are about to make. fifteen
  • 16. Evolution of logistics in recent decades Transportation and selection of mode KPI analysis Choice of the organization Knowledge of behavior of customer 16
  • 17. The optimization process Seventh level To understand when and why digital tools are so closely related to logistics opePersonalization of services and to retrace and understand the optimization proc- ess. rations, it is important - environmental impact monitoring Sixth level Expansion of delivery options (omnichannel) Fifth level Add value to services Analyze activities to prevent or avoid waste Fourth level Third level Service development Second level Cost reduction TO b First level Management of all movements goods 17
  • 18. The optimization process Internet of st WandYopthimandeithergo neitherrvandhestep of evolution logisticians have had to use the available tools andintea their work and assist them on providing the most efficient service to themgsspecdiviganditacyouoryesyespttoeitherramandand teacRCheithernandiq xior onanddyesandtdeitherispyeseitheror Yeahp tivpeithereitheryesrfitsick and lprryeseither:decision process tr hinr assisted Digitization of practices Sixth level Fifth level Supply Chain Optimization Methods Fourth level Purchasing and planning software Third level Additional equipment and automation Second level Improved equipment functionalities First level Basic operations equipment 18
  • 19. Added value of technologies Technologies can take various forms to support the evolution of processes, in order to increase the efficiency, performance or impact of a business model. We can divide the different benefits of technologies into 4 categories, depending on the needs of a company and its management: Automation Performance Quality Impact 19
  • 20. Added value of technologies Automation - Any task that is complex, laborious and time-consuming when performed by human operators will benefit from an automation process in which effort, risk of errors or incidents are reduced. - The goal of automation is to reduce redundant and unnecessary thought processing time so that human operations can focus on value-added tasks. - Automation can support physical operations to reduce effort and risk for operators (i.e. conveyor belt, exoskeleton, etc.) - Automation can support intellectual processing tasks that can be simplified with algorithms and ergonomic solutions (i.e., assisted tools for data entry, interconnected software for data retrieval, etc.) - Automation can also provide insights into decision-making processes, by collecting evidence and accumulating experience (i.e. simulation tools, alert detection systems, etc.) twenty
  • 21. Added value of technologies Performance Improving the performance of a specific process is determined by the ability to consume fewer resources by doing more. The factors that will support this revised process can be many, such as reviewing the quality of the materials, their size, their quantity, the way of processing itself, etc. The amount of energy involved in optimizing a process and improving its performance must also be taken into account in the balance, since if it takes months to improve, a process that only takes a few minutes to complete will probably not give you the gains you would expect before. a long period of time. Ergonomics Quality of the cats Availability From the data Ability Analysis twenty-one
  • 22. Added value of technologies Quality The quality of products, processing or service also provides important levers for improvement. Logistics specialists can simultaneously work on product robustness, service reliability or precision to respond to specific needs. Therefore, technologies will support these aspects either through better market analysis, better industrial equipment to perform some tasks with a better quality standard or mastery of all the information that passes through the processes to anticipate risks. and delays. Tools that ensure control of all constraints and requirements of an operation can greatly improve the overall quality of service. They will avoid errors due to lack of attention or complexity of a specific operation and will alert decision makers in the process. 22
  • 23. Added value of technologies Impact The impact of operations can affect numerous factors such as the company's brand image, relationship with other stakeholders in the supply chain, and the environment. Nowadays it is increasingly critical to feel concerned about the impact of a company on its general environment. Take into account the capabilities of other partners to increase the production and distribution of products, ensure that product standards conform to market expectations (both in terms of regulations and consumer habits) or prevent the overall impact of the chain of supply in biodiversity and resource depletion is an important evolution of our societies. Modern technologies can also support in this sense a more complex factor analysis mechanism and assisted decision-making software: Internet of Things, artificial intelligence, etc. They will cross multiple factors into one equation to provide a better decision based on data evidence. 23
  • 24. Added value of technologies Technologies will provide logisticians with a wide set of possibilities to support their role within a company and contribute to the optimization of its operations. All examples and technology solutions aim to provide similar services and functionality, but require a dedicated and specific environment to function at their best. There is no one-size-fits-all solution. However, they will adapt and be compatible with all logistics operations, that is, with all flows of goods, information or currencies. All these evolutions of tools, equipment and infrastructure are supported by software and digital solutions, now capable of interacting independently with each other, so that the interaction with human beings is reduced to a minimum and is related to the strategy or capacity of business. It is important to note that each of these technologies is only a means to an end, while the purpose and intent of the stakeholders using them will reap the benefits for the company. 24
  • 25. Capsule validation questionnaire Now you will have to answer 5 questions about the content of this capsule to check your understanding. Each correct answer is worth 1 point. You will need a score above 80% to pass. 25
  • 26. Self-assessment questionnaire Question #1: When did the concept of business logistics first emerge? 1970s 1980s 1990s 2000s
  • 27. Self-assessment questionnaire Question n°2: What are the latest objectives for efficient logistics performance? Customer service and data protection Data quantity and quality analysis Optimization of costs and benefits Transparency and traceability
  • 28. Self-evaluation quiz Question n°3: In terms of objectives, what is the ultimate logistics performance level? Digitalisation of services Omnichannel and expansion of services Adding value to services thanks to logistics operations Individual customer service and environment preservation
  • 29. Self-assessment questionnaire Question n°4: Which of the following technologies support logistics performance objectives? ALL Many possible responses Handling equipment warehouses Vehicles Data management software Robots and cobots Automated vehicles and guided Artificial intelligence Models and methods of organization Smart cameras
  • 30. Self-assessment questionnaire Question n°5: What is the common experience of all logistics specialists? Flow management and optimization Data management and optimization Management and optimization of services Optimization and performance of services
  • 31. Added value of technologies Retry? Validate and exit the capsule 31