Krzysztof Wilk-ang

Krzysztof Wilk
Katedra Systemów Sztucznej Inteligencji
Akademia Ekonomiczna im. Oskara Langego we Wrocławiu
e-mail: [email protected]
Knowledge management in logistics
Summary
The organizations aim at improving system of knowledge
management, thus methods of artificial intelligence are used more often.
The article is concerned with the topic of applying artificial intelligence in
the Supply Chain Management (SCM) systems area, that is IT systems
which are helpful in distribution management.
We can identify numerous IT tools which operate particular stages
of supply chain. These are programs useful in identifying goods and
transferred data, which let exchange information in real time, thus
accelerating the flow of materials and improving the level of customer
care. These are also systems serving the storing process (e.g. Synaptic
Stock) which optimize storing management as well as integrated logistic
and transport systems (ILS/ITLS). Synaptic Stock system is the example
of implementing AI algorithms in SCM. It is the first intelligent storing
system in Poland. Synaptic Stock system plays various functions: it leads
to automacity of goods identification according to RFID technology,
constant following the product flow, the process of controlling stock
workers and it leads to automacity of the process of task giving to stock
workers.
Programs using AI algorithms should be adapted to particular IT
systems of SCM needs. SCM systems operate some stages of supply
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chain: planning (creating strategies of managing resources which are
essential to fulfill needs on particular goods and services), identifying
sources of resources, fixing prices, deliveries and payments, managing
resources and storing process, production, the stage of delivery and goods
return. Tools created on the basis of AI lead to improvement of logistic
systems and maximizing effectiveness of companies.
1. Introduction
Knowledge can be defined as an ability to use information.
Information is a set of well-ordered data, which is reached from massmedia such as television, newspapers and radio. Knowledge allows
achieving significant and needed goods. It facilitates solving everyday
problems. Knowledge contribute to implementing changes in lifestyles of
each generation. It is on the one hand the result of civilization changes,
and on the other hand it generates progress. The expansion of new
technologies and appliances is wildly visible. These fruits of knowledge
change the world, human beings, their lifestyles and models of work.
The progress that we observe in almost each branch of life is
connected with better access to information and knowledge, which is
based on information technologies development. Such conditions make
the civilization progress more and more quick. These rapid changes are
visible especially in industry and such new branches as logistics.1
Knowledge management in logistics aims at improving the
effectiveness of enterprises by raising the standards of efficacy of
economic processes. The main purpose of implementing knowledge
1
M. Nycz, Generating knowledge for enterprises: methods and techniques
(Generowanie wiedzy dla przedsiębiorstwa metody i techniki). Wydawnictwo Akademii
Ekonomicznej, Wrocław 2004.
2
management solutions in logistics is to reduce costs and improve
customer care and service. Logistics puts into practice appropriate
strategies within knowledge systems. It is essential to create adequate IT
tools in order to implement artificial intelligence propositions. The article
presents tools of AI implementation in new management concepts.
2. Knowledge and logistics
Logistics is the process of planning, making and controlling
efficient and fluent turnover and storing of not only raw materials, workin process things and products but also services and adequate information
from the source of raw materials extraction to clients according to their
expectations.2
The role of logistics within an organization developed for a long
time before it obtained nowadays standard. First, transport was under
control of production department. Departments of marketing, finance and
production were responsible for stock keeping. Orders were realized by
departments of accounting and selling. Such transport, stock and orders
management created competitive goals and conflicts among each
organization departments. Thus, decisions connected with logistics
processes were not optimal. With time logistics was isolated as a separate
department of an organization in order to increase efficacy of company
management.3
Recently an
era
of
significant
dominance
of
knowledge
management in logistic has begun. Process and strategic approach played
2
E. Gołembska, Compendium of knowledge on logistics (Kompendium wiedzy o
logistyce), II edition, Wydawnictwo Naukowe PWN, Warszawa-Poznań 2001.
3
P.Polak, Process orientation In management and tools of systems integration
(Orientacja procesowa w zarządzaniu a narzędzia integracji systemów). Prace naukowe,
Akademia Ekonomiczna 2006.
3
important role in logistic management. Mainly within organizational,
inter organizational processes and information systems led to rapid
growth of this area of business.
Nowadays logistics is one of the core parts of a modern
organization. H.-Ch. Pfohl distinguished logistic processes, which tell a
lot about its place within an organization. Among main logistic processes
Pfohl classified:4
• Processes connected with transport
• Processes connected with reloading
• Processes connected with store-keeping
• There are also processes classified by Pfohl as additional, which are as
follows:
• Processes connected with goods wrapping
• Processes connected with goods signing
Fluent course of goods production and distribution needs
controlling and information exchange. These are much complex
processes, thus in order to facilitate their managing they are divided into
basic processes. C. Skowronek and Z. Sariusz-Wolski distinguished
several components of logistic processes:5
• Information-decisional processes;
• Logistic costs;
• Infrastructure of logistic processes;
4
H.-Ch Pfohl, Logistic systems (Systemy logistyczne). Biblioteka logistyka, Poznań
2001.
5
Cz. Skowronek, Z. Sariusz-Wolski, Logistics in an enterprise (Logistyka w
przedsiębiorstwie). Polskie Wydawnictwo Ekonomiczne, Warszawa 2003.
4
• Main goals of logistics (adequate level of customer care provision,
strengthening of position on the market, coping with the competition,
costs reduction);
• Real turnover of goods;
• Storing and maintaining of stock.
• As we can see logistics plays an important role in an organization.
Blaik points out essential connections of logistics with other areas in
an organization:6
• Logistics and goods distribution,
• Logistics and the system,
• Logistics and company management,
• Logistics and marketing,
• Logistics and efficacy,
• Logistics and organizational structure of an enterprise.
Recently much more complex and integrated information systems
are being created, such as SCM (Supply Chain Management) and CRM
(Customer Relationship Management). Within organizational integrated
information systems like ERP (Enterprise Resource Planning) are
responsible for implementing SCM and CRM systems7.
Inter organizational information systems are based on settled
randomly obligatory structures of exchanged documents, that is on
standards of electronic data exchange - Electronic Data Interchange
(EDI). EDIFACT standard is used up till now. Majority of the most
important inter organizational information systems implementations have
6
P. Blaik, Logistics (Logistyka), II edition, Polskie Wydawnictwo Ekonomiczne,
Warszawa 2001.
7
E. Gołembska, Compendium of knowledge on logistics (Kompendium wiedzy o
logistyce), II edition, Wydawnictwo Naukowe PWN, Warszawa-Poznań 2001.
5
used this standard, for instance TradeNet has been used in Singapore,
Elixir in Poland. Recently there have appeared initiatives which facilitate
structures of EDI communicators, like LiteEDI or Open Buyig on Internet
(OBI) for small and average companies’ needs.
3. Supply Chain Management
SCM, that is IT systems helping controlling chains of deliveries, is
interpreted as a number of solutions enabling organizations to plan
strategically and do tasks connected with processes of purchasing,
producing, stock-keeping, selling and servicing within a chain of supply.
SCM integrates key business processes of all of logistic chain links, that
is suppliers, producer and receiver in order to achieve maximum
profitability. Among main SCM processes we can distinguish aiming at
optimize orders, purchases, production, incomes and profits and logistic
tasks8.
Among various advantages derived from SCM there are reducing
costs of transport and costs of storing and reloading goods. SCM
implementation functions of planning and supply chain realizing are
treated in every detail as working out a model of whole delivery network
with anticipation of all its limitations becomes possible. Next, by means
of this model an organization can synchronize activities and plan the flow
of materials within whole supply chain. On such basis supply is adjusted
to demand and thus possible to accomplish plans connected with
provision, production, stock and transport are created. Thanks to SCM
customer care is significantly improved, costs and time of planning are
reduced and therefore company’s turnover and profits are increased.
8
J. Majewski, Informatics for logistics (Informatyka dla logistyki), II edition, Instytut
Logistyki i Magazynowania, Poznań 2006.
6
SCM’s solutions allow integrating inner and outside company’s
business processes by using Internet. Moreover, SCM systems influence
on augmentation of efficiency of each employee’s work. Owing to eorders system organizations may provide their workers Internet access to
ratified materials and orders from both individual deliverers and from
online market or stock exchange with authorization to realize transactions
worth not more than limits given earlier. The choice of products and
payment conditions are settled earlier in the central scheme of purchases.9
Within SCM systems that are assigned for managing processes
occurring in supply chain we can distinguish numerous information tools
operating particular stages and aspects of this chain. These are programs
which serve to identify goods and transferred data (e.g. EAN-UCC
system). They permit exchanging data in real time, thus they help hasten
the flow of materials and increase the level of customer care. Systems
operating stocking processes (e.g. Synaptic Stock) are also part of SCM.
These systems optimize storing economy. Other integrated logistic and
transport systems (ILS/ITLS) and intelligent transport systems may be
ranked among systems operating stocking processes.10
The essence of the changes resulting from implementing
information tools in SCM is providing such service of these tools that it is
consistent with economical indices of functioning industrial subjects
assessment. Therefore there arise a problem of coordination. Artificial
9
Ibidem
Within SCM apart from tools various types of strategies coordinating cooperation
between business and information tools can be distinguished (e.g. strategies of quick
client service, such as quick response or efficient customer response), ISP. S.A. Institute
of Programming Studies (Instytut Studiów Programistycznych), http://www.ispsa.pl
(2007-01-18); Logistyka.net.pl, http://www.logistyka.net.pl (2007-01-18).
10
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Intelligence (AI) methods and techniques more and more randomly used
in business are helpful here.
4. Artificial Intelligence solutions in logistics
The essence of implementing AI solutions is the endeavor to make
the processed in business processes data automatical in a way that enables
making accurate managerial decisions according to analyses of particular
data basis done by business programs. Moreover, AI programs start
replacing workers. Even assessments of particular workers (stock
workers) are generated by a program.
Programs using AI algorithms should be adapted to needs of
existing IT systems like SCM. SCM information systems serve following
stages of supply chain:
• The stage of planning –strategies of managing resources essential to
satisfy supply for certain goods or services are created.
• The stage of defining resource sources (deliverers) – on this stage
procedures of price, deliveries and payment settling should be worked
out.
• The stage of stock and storing processes management – such activities
as stock management, procedures of receipt realization and delivery
checking, transfer of the delivery to production department, ratifying
certain deliverers’ payments are realized.
• The stage of production – on this stage activities necessary to
producing, wrapping, preparing to send goods are planned; measures
of quality, magnitude of production and employees’ work efficacy are
done.
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• The stage of delivery – actions connected with receiving orders from
clients, creating stock network, choosing transporters who provide
goods to clients and working out invoice system are concerned on this
stage.
• The last stage of returns – actions like creating network of claims and
faulty products return points and arranging points aiming at giving
customers care and support when they have problems with purchased
goods are taken on this stage11.
It must be noticed that on nowadays level of AI programs
development systems which could operate each stage of the chain and
which would generate information about qualitative features based on
received data are scarce. AI applications being created now operate on
particular stages. One of such solutions will be described here.
Synaptic Stock system is an example of using artificial
intelligence algorithms in supply chain management. Synaptic Stock is
called by its inventors as the first intelligent stocking system in Poland.
Information analysis imparted by program’s inventors indicate that the
main feature of this program is that it automates stock economy. This is
why it is called an intelligent system. The process of automacity and
optimizing proceeds on following, characteristic for storing processes,
levels:
• Synaptic Stock automats identification of goods according to RFID
technology,
11
M. Maternowska, Analysis of logistic costs supports decision making process in
distribution area – case study (Analiza kosztów logistycznych wspomaga proces
podejmowania decyzji w sferze dystrybucji – studium przypadku). In: ”Logistics”
(Logistyka) 2002, No 4.
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• It enables constant following of the process of products flow, that is
the system allows to observe currently where an item or a portion of
goods is in a certain moment,
• The system permits to control stock employees’ work on the basis of
two indices: speed and efficacy of tasks done and the index of losses in
the store,
• Synaptic Stock optimizes goods distribution within the store in a way
that it decreases to minimum time of work,
• It automats the process of giving tasks to particular stock workers.12
Apart from these main functions Synaptic Stock system allows
realizing other functions that improve servicing a stock, e.g. managing
goods movement according to FIFO and LIFO methods, servicing several
stocks at the same time, managing PZ, WZ and MM documents, servicing
goods sticking, making possible to print transport documents or doing
stock cataloguing.13
5. Conclusions
XXI century brings new challenges to all society. Dynamic
development of technology and market helps logistics to evolve too. It is
the century of knowledge and its future depends on appropriate
knowledge management and modern information technologies using.14
Literature Cited
12
Based on: ISP. S.A. Institute of Programming Studies (Instytut Studiów
Programistycznych), http://www.ispsa.pl (2007-01-18).
13
Ibidem.
14
M.Nycz, B.Smok, Modern information technologies in management (Nowoczesne
technologie informacyjne w zarządzaniu). Akademia Ekonomiczna, Wrocław 2006.
10
Blaik P., Logistics (Logistyka), II edition, Polskie Wydawnictwo Ekonomiczne,
Warszawa 2001.
Gołembska E., Compendium of knowledge on logistics (Kompendium wiedzy o
logistyce), II edition, Wydawnictwo Naukowe PWN, Warszawa-Poznań 2001.
Majewski J., Informatics for logistics (Informatyka dla logistyki), II edition,
Instytut Logistyki i Magazynowania, Poznań 2006.
Martenowska M., Analysis of logistic costs supports decision making process in
distribution area – case study (Analiza kosztów logistycznych wspomaga proces
podejmowania decyzji w sferze dystrybucji – studium przypadku). In:
”Logistics” (Logistyka). 2002, No 4.
Nycz M., Generating knowledge for enterprises: methods and techniques
(Generowanie wiedzy dla przedsiębiorstwa metody i techniki). Wydawnictwo
Akademii Ekonomicznej, Wrocław 2004.
Nycz M., Smok B., Modern information technologies in management
(Nowoczesne technologie informacyjne w zarządzaniu). Akademia
Ekonomiczna, Wrocław 2006.
Pfohl H.-Ch, Logistic systems (Systemy logistyczne). Biblioteka logistyka,
Poznań 2001.
Polak P., Process orientation In management and tools of systems integration
(Orientacja procesowa w zarządzaniu a narzędzia integracji systemów). Prace
naukowe, Akademia Ekonomiczna 2006.
Skowronek Cz., Sariusz-Wolski Z., Logistics in an enterprise (Logistyka w
przedsiębiorstwie). Polskie Wydawnictwo Ekonomiczne, Warszawa 2003.
Internet sites
ISP. SA. Institute of Programming Studies (Instytut Studiów
Programistycznych), http://www.ispsa.pl (2007-01-18)
Logistyka.net.pl, http://www.logistyka.net.pl (2007-01-18).
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