Kraft must connect its production, sales, and logistics internally through an intranet and externally through the internet with suppliers, third party logistics providers, and customers to efficiently manage information and product flows. Various technologies are used for this, including barcodes, RFID, XML, and EDI to track products and share data across systems. Key performance metrics focus on reducing costs, damage, and improving training to meet goals and standards for efficient operations.

1. Logistics Technology

2. To stay competitive Kraft must constantly obtain and
manage information about their products & customers
Consumer Logistics Production

3. Information Management
Who, what, why, when, how?
More is not better GIGO
It will cost more
It’s all about connecting
Accuracy! Who are
your
stakeholders?

4. Stakeholders = Partners
Vendors Third Party
(suppliers)
Logistics
Transportation
Warehouse
Forwarding
Information
Production, Sales, & Logistics inside Kraft must be electronically connected
to suppliers, 3PL providers, and customers through an automated network.
Intranets are used internally (office automation) and Internets are used
externally (transaction processing system). Various means of technology
are used to manage both information flow (EDI) and product flow (GPS, RFID).

5. Barcodes
2D Technology

6. Maxicode EAN-13 (European Article Numbering international retail
(2-D) product code)
UPC-A (Universal Product Code seen on almost all retail
products in the USA and Canada)
Interleaved 2 of 5 (compact numeric code, widely used in
industry, air cargo, other applications)
PostNet (used by U.S. Postal Service for automated mail
sorting)

7. XML Technology
<c data load>
<x:parse xml="${xml}" var=“XB5S3" scope=“part number" >
</c:if>
XB5S3
Shipper’s Files
Distribution
Center Files
Buyer’s Files XB5S3=
PN#349004
“Unitized” data to
share across various
software platforms
Corporate Financial Files
Document Type Definition

8. Radio Frequency Identification Data

9. Performance Measurements
Quantitative
Easy to Understand
Encourages correct behavior
Visible
Understood by everyone
Looks at the complete process
Measures only what’s important
Measurement benefits outweigh costs of doing it
Measure the number of damaged containers Goals
Determine root causes of problems
“Normalize” causes by statistical means
Reduce costs
Decide corrective action ROS
Set standards for operations & workers
Post standards on wall chart Damage <$10K/mo
Training
Train workers to standard
Analyze costs of tracking

10. Efficient Consumer Response
Sourcing
(vendors &
raw materials)
Information
Flows
Factories
(production) Vendor
Managed
Inventory
Third Party
Logistics
(3PL or TPL)
Retail
Locations

11. Logistics Technology Applications