Chapter 1

Foundation of
Transportation Information
Chapter 9 System
Security and Chapter 2:
Control Information Technologies:
Concepts and
Chapter 8 Management
Managing TRANSPORTATION
TIS INFORMATION
SYSTEM (BPMG
Chapter 3: Designing
Chapter 7 3043)
TIS
Transport Knowledge
(Information)
Management Chapter 4
Acquiring IT Applications
Chapter 6
and Software Infrastructure
Maintenance & Improving
In Transportation
TIS
Chapter 5 Organization
Implementation of
TIS

1 Transport and Logistics

Department
 Chapter 1
Foundation of Transportation Information System
 TIS covers….

delivery
Supply
chain

cargo

Freight passengers
Control
system

3 Transport and Logistics

Department
 It start from a supply chain
process

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Department 2009
 The flow…

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 Information
Systems

🞂​ Purpose
🞂​ Collect, organize, and portray meaningful data to
decision
makers
🞂​ Challenge: vast volumes of information
🞂​ Serve multiple organizational levels (i.e. managerial)
🞂​ Facilitate integrated decision making within firms and
across supply chain
🞂​ Core components
🞂​ Common databases, hardware, software
🞂​ Enterprise resource planning (ERP) systems
7 Transport and Logistics July
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9 Transport and Logistics July
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11 Transport and Logistics July
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 Information
Systems

🞂​ Info needed to manage transport transaction

🞂​ Pre-transaction phase: info needed to plan carrier
movement
🞂​ Shipper needs purchase order, forecasts, equipment availability,
possible pick-up times
 Input to carrier selection decisions
🞂​ Carrier needs bill of lading information; preferred pick-up and delivery
times
🞂​ Receiver needs advance shipment notice; scheduled delivery times
 Information
Systems

🞂​ Info needs for transport transaction

🞂​ Transaction phase
🞂​ All parties need shipment status info
 Carriers typically provide on exception basis
🞂​ Post-transaction phase
🞂​Shipper and receiver needs depend upon terms of
sale
 Proof of delivery and carrier performance
 Freight bill
 Claims, if necessary
🞂​ Carrier needs payment info, claims info
 Information
Sources

🞂​ Prime sources were paper documents

🞂​ Many transactions are now paperless

🞂​ Bill of Lading (BOL)

🞂​ Initiates shipment, typically generated by
shipper
🞂​ Five legal purposes
🞂​ Receipt for goods
🞂​ Description of shipment
🞂​ May be evidence of title to goods
🞂​ Operating document
🞂​ Defines terms of contract between carrier and
shipper
 Bill of Lading
🞂​ Minimum information required:
🞂​ Origin/destination of shipment
🞂​ Carrier designation
🞂​ Special operating instructions
🞂​ Shipment description
🞂​ Billing instructions
🞂​ Two types of bills of lading
🞂​ Straight or non-negotiable
🞂​ Order or negotiable
 Evidence of title to goods, process of
using
Information
Sources
🞂​ Waybill
🞂​ A list of goods sent by a common carrier, as a railroad,
with
shipping directions.
🞂​ Operating document for railcar movement
🞂​ Assigns car to train, contains billing info
🞂​ Describes car’s contents
🞂​ Most are now electronic
🞂​ Manifest
🞂​ A list of the cargo carried by a ship, made for the use of
various agents and officials at the ports of destination.
🞂​ A list or invoice of goods transported by truck or train.
🞂​ A list of the cargo or passengers carried on an airplane.
🞂​ Trucking equivalent to waybill
🞂​ Documents weight loaded in each trailer quartile
 Information
Sources
🞂​ Freight bill
Non-negotiable B/L that serves as a contract of carriage between
🞂​
a shipper and a freight forwarder.
🞂​ Purpose/function:
 Carrier’s invoice for transport services
 Notifies buyer of charges and means of assessment
 Can serve as proof of delivery
🞂​ Efforts to shorten freight bill payment cycle
🞂​ Many buyers require proof of delivery (signed freight bill)
before initiating payment process
 Delivery proof matched with BOL and packing list
 Carriers supply electronic delivery proof to speed process
🞂​ Evaluated receipts process: reengineers payment process
 Information Technology

🞂​ A leading and constant concern of logistics

and transport managers
🞂​ Areas of application
🞂​ Top application: connecting to supply chain
🞂​ Drivers
🞂​ Information can substitute for assets, services
 Eg: Satellites, inventory visibility, safety stocks
🞂​ Cost of IT continues to fall and capabilities rise
 Hardware, software, networking communication and data
exchange capabilities
Information Technology

🞂​ Areas of application
🞂​ Drivers,
🞂​ Supply chain partners demand more info
 Sharing/collaborating on demand forecasts
🞂​ Managing information flows well is critical to meeting
customer demands and to efficient operations and
profitability
 Info flow necessary for managing relationships and product and
cash flows
 Information Technology,
cont’d
🞂​ Types of information technology
🞂​ The basics: comprehensive, quality electronic
data interchange (EDI)
🞂​ Definition: the application-to-application exchange of
standard format business transactions
 One of oldest IT forms, now nearly a standard requirement
🞂​ Advantages
 Eliminates human intervention and errors
 Reduces transaction costs by reducing labor costs
 Improves customer service – auto. exception alerts
27 Transport and Logistics July
Department 2009
 Information Technology
🞂​ EDI is a modern instrument to fasten internal and
external processes and to make them more
transparent.
🞂​ Requires protocols and standards to define data, its order,
field lengths, etc.
 Universal standards set by American National Standards
Institute ANSI
 Industry-specific standards
🞂​ Most popular uses – sending/receiving orders, invoicing,
and
electronic funds transfer
🞂​ Institutional and technical barriers
 Capital investment, hardware/software compatibility
 Consistent formats, security, top mgmt. support
 Internal ownership
29 Transport and Logistics July
Department 2009
 Information Technology

🞂​ Types of technology,
🞂​ The basics: automatic ID - bar coding
🞂​Patterns of dark bars and spaces that when coupled with other
IT provides info on product movement throughout supply chain
🞂​ Requires standard formats of bar/space patterns
 Code 39 and Code 128 are most popular formats
 Code 128 provides excellent density for all-numeric data and good
density for alphanumeric data. It is often selected over Code 39 in new
applications because of its density and because it offers a much larger
selection of characters. The Code 128 standard is maintained by AIM
(Automatic Identification Manufacturers).
🞂​ Developments
 2-D bar codes
 Matrix bar codes
32 Transport and Logistics July
Department 2009
Information Technology
🞂​ Types of technology
🞂​ The basics: track and trace
🞂​ Provides in-transit shipment visibility
🞂​ Greatly enhanced by satellite technologies coupled with EDI
and radio frequency (RF) technology
 Carriers can monitor vehicle positions, better manage vehicle
utilization, and be more customer responsive
🞂​ Classification of shippers by track/trace capability
 Lagging edge
 Mainstream
 Leading edge
41 Transport and Logistics July
Department 2009
 Information Technology

🞂​ Types of technology
🞂​ Emerging: electronic product code (EPC) tags
🞂​ Bar code info: static and requires readers to capture
🞂​ EPC or “smart” tags
 Info can be updated, carrying more info than bar codes, and
can transmit info via RF technology
🞂​ Wal-Mart requirements for RFID
🞂​ Issues in universal adoption
 Cost
 Standards
 Compatibility with current software systems
Information Technology
🞂​ Types of technology
🞂​ Emerging: the Internet
🞂​ Principal current uses
 Information resource: eg: track and
trace
 Communications purposes
 Share demand, production forecasts
 Collaborative transportation mgmt (CTM)
 To accomplish transactions
🞂​ Challenges
 Capacity
 Security
Information Technology

🞂​ Types of technology
🞂​ Emerging: the Internet
🞂​ Many future applications
 Sales interface
 Customer service utility
 Load-matching services
🞂​Trends in e-business capabilities to support
transport
 Information Technology
🞂​ Types of technology,
🞂​ Emerging:Transportation Requirements Planning
🞂​ Sharing of info regarding movements
Improves flow efficiency/effectiveness
 Using data inputs from shippers and carriers, develops optimal
shipment plans/schedules given shipper requirements and carrier
constraints
 Includes “what if” planning analysis capabilities
 Given shipment plan, provides status/performance reporting

🞂​ TRP may be stand-alone or linked to ERP system

🞂​ Transportation management software development and
implementation
Information Technology

🞂​ Types of technology,
cont’d
🞂​ The future: Internet-
intelligent
applications
🞂​ Heuristics
designed to reduce degree of
manual interaction
 Ex: event management
🞂​ The future:Transparent EDI
 Reducing EDI cost
via more flexible
Strategic Use of
Information
Technology
Digital Business
Thin Client
PC
On-line E- Commerce Server STARS
Busi ness t o Busi ness
ATppelianlcee Linux SSL Of f i ce Sui t
Vi d eeo Conf erenci ng N
Ser v er

communicatiSoingnle-sstation Li nux SCO Unix

etworks
Server Uni x
Sybase ASE
Appliance Database
Store Tarentella
Server Net Cold Fusion
Appliance Wi nd ows 2 0 0
Store 3 Beacon Hill's Stars
Store 1 0
Apache Server
On-line Multi-station Store
IP Ad d r ess Apache Server
Linux
Credit Card Approval 2
IP Ad d r ess
IP Ad d r ess 3
On-line
POS 1
Salesperson
Your Dom ai n/ URL

Field SalesCommercial I nt er
net Hub
PC

E-commerce
Internet In-house
operations

PC
PC
STARS
Accounting
Phone Orders
Mail Orders
On-line Order
Fulfillment Thin Client
Consumer
Customers
Consumer &
Purchasing Thin Client
Business
In-office
 The Drivers of change
🞂​Business Pressures on an Organization that force
change.

Technology

Market Society
Organizational Response to
these Drivers
🞂​ Strategic Management & Systems
🞂​ Continuous Improvement – Operational Efficiency
🞂​ Restructuring business processes
🞂​ Manufacturer to order, Mass-Customization
🞂​ Customer Focus Strategy
🞂​ Electronic business
🞂​ Business Alliances

Technology is required to effectively implement these

critical responses.
56
Information System

 🞂​ An information system (IS) collects,

processes, stores, analyzes, and disseminates
information for a specific purpose. Like any other
system, an information system includes inputs
(data, instructions) and outputs (reports,
calculations). It processes the inputs by using
technology such as PCs and produces outputs that
are sent to users or to other systems via
electronic networks and a feedback mechanism
that controls the operation.
Information System Is A
System
 Information Systems: An
application
🞂​ Functional Perspective
Marketing
🞂​ Identify customers
🞂​ Determine what they want
🞂​ Planning products
🞂​ Advertising and promoting
products
🞂​ Determine prices for products
Information Systems

🞂​ Functional Perspective
Sales
🞂​ Contact customers
🞂​ Sell the product
🞂​ Take the order
🞂​ Follow-up on the
sale
🞂​ 5 year sales
forecast
Information Systems

🞂​ Functional Perspective
Manufacturing
🞂​ Control Equipment and machinery
🞂​ Design new products
🞂​ When and quantity of products to
produce
🞂​ New production facilities
🞂​ Generate the work order
Information Systems

🞂​ Functional Perspective
Purchasing
🞂​ Which vendors
🞂​ Quantity to purchase
🞂​ Coop, rebate tracking
🞂​ Handle delivery
discrepancies
🞂​ Generate the purchase
order
Information Systems

🞂​ Functional Perspective
Finance
🞂​ Financial Assets
🞂​ Investment
management
🞂​ Banking
🞂​ Long term budgets
Information Systems

🞂​ Functional Perspective
Accounting
🞂​ Accounts Receivable
🞂​ Disbursements
🞂​ Payroll
🞂​ Depreciation
🞂​ Earned Coop and
Rebates
Information Systems

🞂​ Functional Perspective
Human Resources
🞂​ Employee wages,
salaries & benefits
🞂​ Long term labor
requirements
🞂​ Tracking vacation, sick,
🞂​ Track employee skills
🞂​ Interview and review
employees
Trends in Technology

 🞂​ Internet
 🞂​ Mobile Computing and M-
Commerce (mobile)
 🞂​ Wireless networks
 🞂​ Pervasive Computing
 🞂​ Smart Devices
Trends in Technology

 🞂​ The Network Computer

 🞂​ Optical Networks
 🞂​ Storage Area Networks
 🞂​ Intranets & Extranets
 🞂​ The Internet