TLMT5-1

TLMT 201 – Retail Transportation Week 5

Transcript of “Technology in Transportation” Video

This week we will discuss the available technology used within transportation and logistics. The technology discussed in this presentation will include: electronic data interchange or EDI, Automatic Identification or Auto ID, Radio Frequency Identification or RFID, and types of software applications available to those in the transportation and logistics field such as transportation management systems, warehouse management systems, and event management systems. EDI or electronic data interchange is used to transmit data between the various points in the supply chain. For example, a shipper may transfer a new load or shipment to their carrier via EDI which travels electronically to the carrier’s system. This is a method that saves time but there are costs associated with this type of technology. Also, there are different versions of EDI so it is important that each company is equipped to receive the appropriate information and the IT systems are compatible. Auto ID is another technological advancement employed in the transportation and logistics field. For example, bar coding, RFID, and voice data collection. We are all familiar with bar codes. You know those black and white lines and numbers located on everything we buy? This little bar code does wonders for the supply chain and in the end, retailers. Bar codes provide cost savings, a reduction in human error, and increases customer satisfaction. Take for example a warehouse that receives hundreds and thousands of different products and quantities each day. Think about how much time and effort it would take if someone documented all of that inventory by hand. Think of the errors involved. An error happens in shipping or receiving this product, all of the inventory levels are inaccurate which means the assessed value of the product is incorrect not to mention the difficulty in physically locating the product in the warehouse to ship it to the retail customer. Bar coding minimizes human error simultaneously increasing efficiencies with inventory and spacing. That’s why it is important to bar code all products. This brings us to RFID or radio frequency identification. This is a great way to track a shipment throughout the supply chain. A RFID tag is mounted on the product and contains a chip that collects the data. This data is conveyed to the RFID reader. This reader uploads the data to the company’s computer system. This wonderful little tag comes in two versions: active and passive. An active RFID tag has its own power source and reader that continues to feed data into the system whereas a passive RFID tag transmits data to the reader only. Due to these differences there is also a difference in how much each one costs. Now, that we have briefly reviewed EDI & Auto ID let’s look at the different types of software applications available to those in transportation and logistics. There are 3 types of software systems we will discuss: transportation management system, warehouse management system, and event management system.

First, a transportation management system reduces time and effort as they provide a multitude of functions. For example, I worked at a 3PL and they used a TMS that was generally used by trucking companies; however, this TMS was customized to suit their needs. The system was used for order management, tracking shipments, compiling shipper and carrier information, reporting revenue and profit per employee and team and various other functions for accounting, marketing and sales, etc. So these types of systems provide diversity to those needing a wide array of functionality. With all of this functionality comes a big price tag but worth the expense. Another point is that these systems require training and do not prevent human errors in data entry. Cleaning up the records and data contained in these systems is very time consuming. Next, we have warehouse management systems. These are great because they automate warehouse processes that can be time consuming such as picking, receiving and putting away the product, loading, and shipping – things of that nature. Besides the cost of implementation a WMS needs to be compatible with other technologies to truly utilize its functionality. Last, is the event management system. This kind of system is integrated with RFID and TMS systems which can be very exciting as the EMS alerts you to events happening in real-time as the product moves along the supply chain. In conclusion, we have discussed technology within the transportation and logistics field to include EDI, Auto ID, and the 3 types of software applications available to effectively and efficiently manage the supply chain.

TLMT 201 – Retail Transportation Week 5

Transcript of “Technology in Transportation” Video

This week we will discuss the available technology used within transportation and logistics. The technology discussed in this presentation will include: electronic data interchange or EDI, Automatic Identification or Auto ID, Radio Frequency Identification or RFID, and types of software applications available to those in the transportation and logistics field such as transportation management systems, warehouse management systems, and event management systems. EDI or electronic data interchange is used to transmit data between the various points in the supply chain. For example, a shipper may transfer a new load or shipment to their carrier via EDI which travels electronically to the carrier’s system. This is a method that saves time but there are costs associated with this type of technology. Also, there are different versions of EDI so it is important that each company is equipped to receive the appropriate information and the IT systems are compatible. Auto ID is another technological advancement employed in the transportation and logistics field. For example, bar coding, RFID, and voice data collection. We are all familiar with bar codes. You know those black and white lines and numbers located on everything we buy? This little bar code does wonders for the supply chain and in the end, retailers. Bar codes provide cost savings, a reduction in human error, and increases customer satisfaction. Take for example a warehouse that receives hundreds and thousands of different products and quantities each day. Think about how much time and effort it would take if someone documented all of that inventory by hand. Think of the errors involved. An error happens in shipping or receiving this product, all of the inventory levels are inaccurate which means the assessed value of the product is incorrect not to mention the difficulty in physically locating the product in the warehouse to ship it to the retail customer. Bar coding minimizes human error simultaneously increasing efficiencies with inventory and spacing. That’s why it is important to bar code all products. This brings us to RFID or radio frequency identification. This is a great way to track a shipment throughout the supply chain. A RFID tag is mounted on the product and contains a chip that collects the data. This data is conveyed to the RFID reader. This reader uploads the data to the company’s computer system. This wonderful little tag comes in two versions: active and passive. An active RFID tag has its own power source and reader that continues to feed data into the system whereas a passive RFID tag transmits data to the reader only. Due to these differences there is also a difference in how much each one costs. Now, that we have briefly reviewed EDI & Auto ID let’s look at the different types of software applications available to those in transportation and logistics. There are 3 types of software systems we will discuss: transportation management system, warehouse management system, and event management system.

First, a transportation management system reduces time and effort as they provide a multitude of functions. For example, I worked at a 3PL and they used a TMS that was generally used by trucking companies; however, this TMS was customized to suit their needs. The system was used for order management, tracking shipments, compiling shipper and carrier information, reporting revenue and profit per employee and team and various other functions for accounting, marketing and sales, etc. So these types of systems provide diversity to those needing a wide array of functionality. With all of this functionality comes a big price tag but worth the expense. Another point is that these systems require training and do not prevent human errors in data entry. Cleaning up the records and data contained in these systems is very time consuming. Next, we have warehouse management systems. These are great because they automate warehouse processes that can be time consuming such as picking, receiving and putting away the product, loading, and shipping – things of that nature. Besides the cost of implementation a WMS needs to be compatible with other technologies to truly utilize its functionality. Last, is the event management system. This kind of system is integrated with RFID and TMS systems which can be very exciting as the EMS alerts you to events happening in real-time as the product moves along the supply chain. In conclusion, we have discussed technology within the transportation and logistics field to include EDI, Auto ID, and the 3 types of software applications available to effectively and efficiently manage the supply chain.