GIS and Logistics

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GIS and Logistics

• Michael A. McAdams
• Business GIS (Geo 491)
• Fatih University

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Why is Logistics important?

• The art of getting the right stuff, to the right
  place, at the right time
• Plans , implements, and controls the effective
  flow and storage of goods, services, and related
  information from the point of origin to the point
  of consumption to meet the customers
  requirements. - Council of Logistics Management

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More on Logistics

• Logistics is concerned with the design and
  management of systems for the movement of
  products from points of production to points of
  consumption
• Such systems typically encompass activities such
  as transportation, warehousing, materials
  handling, inventory planning, and control
  customer service, facility location, scheduling
  and purchasing
• (quoted from http//fisher.osu.edu/career/ungrad/
  exploration/Career20in20Transportation20and20L
  ogistics.ppt)

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Logistic Activities

• Transportation
• Warehousing
• Inventory Management
• Materials Handling
• Purchasing
• Order Processing

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Logistics Strategies

• JIT - Just-In-Time
• ER - Efficient Replenishment
• CR - Continuous Replenishment
• ECR - Efficient Consumer Response
• VMI - Vendor Managed Inventory
• SBT - Scan-Based Trading

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Just-In-Time Purchasing

• Frequent shipments of small quantities
• Short time windows for deliveries
• Increased traffic on highways and in metropolitan
  areas
• Partially offset by suppliers locating near
  customers

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Vendor Managed Inventory

• Vendor determines shipment amounts and timing
  based on customer needs
• Requires tie-in between vendor and customers
  inventory system
• Vendor may still deliver on a JIT basis with time
  windows set by buyer
• Traffic impact remains

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Scan-Based Trading

• Suppliers are paid by retailers when consumer
  purchases are scanned at check-out
• Requires item information (e.g., price paid by
  retailer) to be included in retailers cash
  register information system
• Supplier and retailer need to closely link
  information systems (e.g., same item codes)

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Scan-Based Trading

• Big advantage is that retailer no longer needs to
  check in items when they are delivered by
  suppliers
• Supplier can set delivery times during off-peak
  hours
• Supplier can deliver JIT but with a reduced
  impact on roadways
• (reference http//www.fhwa.dot.gov/freightplannin
  g/drsnpres.htm)

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GIS and Logistics

• GIS is a obvious companion for logistics
• helps in visualization of routing applications
• Integrates attribute data with location (i.e.,
  inventories in stores or warehouses)
• spatial modeling tools aid in decision making
  (i.e., shortest path or least cost)

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Vehicle Routing
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Network Cost and Distribution
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Spatial Databases and Logistics (a simple
explantion)

• GIS is the linking of entities and attributes
• networks are the basic building blocks for the
  use of GIS in logistics
• using topology embedded in GIS shortest path and
  routing can be efficiently accomplished
• attributes can change dynamically related to
  different operations

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Conclusion

• GIS is a powerful tool in logistics for vehicle
  routing, efficient location of warehouses to
  customers and a variety of other uses
• The use of the processing power of the computer
  can realise cost savings and more efficient
  operations
• Many in the private and public sector have
  heavily invested in GIS-T and it expected that
  this market for GIS will continue to grow