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We present a software component architecture for supply chain management across dynamic organisational networks. The local management in the architecture is done by existing enterprise resource planning (ERP) systems, warehouse management systems (WMS) and transportation management systems (TMS). The integral management in the architecture is execu...
Contexts in source publication
Context 1
... chain provide speci fi c functions for typical users: ERP, enterprise resource planning systems: functions: purchase, materials management and sales; users: manufacturers and trading companies. WMS, warehouse management systems: functions: receipts put-away, bin management and order picking; users: logistics service providers and wholesalers. TMS, transportation management systems: functions: transport booking, planning and monitoring; users: forwarders and carriers. A system like ERP, TMS and WMS has its strength in the consistent management of elementary business data, such as: customers and sales orders, items and prices, warehouses and bins, resources and work orders, suppliers and purchase orders. Each of the systems has its own database in which these data are stored. The software programs in an ERP system, WMS or TMS provide functions for the transformation of the stored data during the course of the business process. The users can access the programs they need for their tasks through a user interface. The ERP, WMS and TMS focus on co-ordination of the processes within the organisation. Their databases store the internal data, the programs provide intelligence for internal co-ordination and the user interfaces give access to internal users. So, these traditional systems are fi t for internal logistics management, but they miss the co-ordination capabilities required for the management of dynamic supply chains. Pos- sible EDI interfaces between the local systems enable the exchange of information, but they do not add the required intelligence for supply chain management. For supply chain management across dynamic organisation network, the basic ERP, WMS and TMS (including EDI interfaces) are not enough. Additional systems are needed in the supply chain management architecture to support the co-ordination of logistics processes which are distributed over different organisations. Therefore, in the supply chain management architecture (see Fig. 4), we introduce software components on top of ERP, WMS and TMS to provide extra intelligence for co-ordination as well as greater fl exibility to cope with dynamics. The required intelligence is built in the software components, whereas the component structure enables the required fl exibility. The software components in the architecture are called supply chain engines (SCEs), to express the power they provide for supply chain management as an extension to the local ERP, WMS and TMS. The supply chain engines can run on the computers of the different organisations in the supply chain. Together, the software components make up a system layer dedicated to supply chain management. Whereas the ERP, WMS and TMS focus on internal management, the SCEs add functions and data for external management to the supply chain architecture. The software components in the architecture can be classi fi ed in three categories, differentiated to the level of supply chain management supported by the engines: Communication engines: function: basic communication between the systems (and users) in the supply chain; examples: data communication, message conver- sion and flow control engines. Information engines: function: transparent information over the systems (and users) in the supply chain; examples: stock visibility, track and trace and report query engines. Management engines: function: advanced management across the systems (and users) in the supply chain; examples: inventory management, production management and distribution management engines. In the communication layer, the message communication engines, for example, support the exchange of messages between systems using either SMTP (e-mail), FTP ( fi le transfer) of HTTP (web protocol). A message communication engine is installed on each of computers to be connected. Then, the local systems can exchange messages through the local engines, which pack, send, transfer, receive and unpack the messages. At the information level, the stock visibility engines, for example, can present stock data from different local systems. External users can specify their information request via a Web browser. The engines retrieve the stock levels from the local systems and integrate the information in a stock overview. This overview can be displayed to an external user or can be imported in another system in the supply chain. The management layer includes engines for advanced management of the supply chain. They have intelligent rules for fully automatic decision making and semi-automatic decision support. For example, distribution management engines can be used for the integral management of distribution services which are provided by independent organisations in a physical distribution network. Below, we will explain the design and application of inventory management engines in the software component architecture for supply chain management. Inventory management engines enable integral inventory management across networked organisations (see Fig. 5). These software components together with existing systems in the supply chain represent an inventory management architecture. An inventory management engine (IME) is an extremely elementary system, managing the stock level of just one single SKU stock- point. The software components are loosely coupled to one another in networks, in order to support integral inventory management in dynamic supply chains [25]. The local management systems (ERP, TMS or WMS) can be used by the IMEs to get and set stock information. The IMEs can be distributed over several locations and organisations in the supply chains. The inventory management engines support integral inventory management according to base stock control (BSC), material/distribution requirements planning (MRP/DRP) and line requirements planning (LRP) [26 – 30]. With the help of the system variables and system equations in a network of IMEs, integral inventory management can be supported according to one of these algorithms. The software components integrate stock levels in the time dimension as well as in the place dimension, by using extra information on time-phased demand (order plans) and integral inventory (local plus downstream stock). For the support of networked organisations some supplementary system variables and equations are included in the IMEs. The software components support con fi guration fl exibility, timing fl exibility and algorithm fl exibility. Con fi guration fl exibility is the ability to couple and decouple of IMEs in a dynamic network. Timing fl exibility refers to coping with different review moments and plan moments. Algo- rithm fl exibility includes algorithm selection in an IME and algorithm transition across the engines. These properties allow autonomy of networked organisations with respect to the place, the timing and the type of management. The software components for integral inventory management across networked organisations have an object-oriented design (see Fig. 6). An information system for supply chain management can be built of objects that represent real-world entities in the supply chain [31,32]. Forthcoming objects are dur- able, and have data and functions that naturally belong together. An inventory management engine consists of fi ve object classes, each responsible for the functions and data related to an entity type in the system environment: customers, suppliers, operational process, inventory (stock-point) and strategist (supervisor) [33]. The object classes in an IME are equipped with attributes and operations which enable them to per- form in accordance with their targets [34,35]. The operations of an object class give the ability to provide its functions, while the attributes give the ability to maintain its data. The objects work together by sending messages, representing a request for a service and the response to that service request. Customers and suppliers in the environment can again be equipped with IMEs, but they may also use other information systems or no system at all. If a customer or a supplier also makes use of an IME, the same system associa- tions apply from the viewpoint of the customer or the supplier. The inventory management architecture has been tested against a network of supply chains for manufacturing and distribution of cordless phones [36,37]. A dozen of manufacturers in various countries supply a telecommunications retailer with cordless telephones (see Fig. 7). The retailer sells the products through more than hundred outlets to customers in the consumer and business market. Each of the organisations has its own information systems in place for local management. Due to market and technology changes, the network of organisations in the supply chain is expanding and changing more frequently. At the same time, the supply chains need to be managed in a more integral way to remain competitive. In the supply chain for cordless telephones there is the need for integral inventory management across the networked organisations. However, it is practically unfeasible to develop and maintain the networked inventory management with the existing information systems in the supply chain. The heterogeneity and instability of the local systems would require a prohibitive number of dedicated interfaces. Networked inventory management can be achieved by application of IMEs for every single SKU stock-point. Loose coupling enables the IMEs to combine integration and fl exibility. The software components form a system layer for supply chain management, abstracted from the existing systems for local management. Implementation technology is needed for the devel- opment and deployment of the software components in the supply chain management architecture. The technology used for the implementation of the supply chain engines includes: application ...
Context 2
... management engines enable integral inventory management across networked organisations (see Fig. 5). These software components together with existing systems in the supply chain represent an inventory management architecture. An inventory management engine (IME) is an extremely elementary system, managing the stock level of just one single SKU stockpoint. The software components are loosely coupled to one another in networks, in ...
Context 3
... management engines enable integral inventory management across networked organisations (see Fig. 5). These software components together with existing systems in the supply chain represent an inventory management architecture. An inventory management engine (IME) is an extremely elementary system, managing the stock level of just one single SKU stockpoint. The software components are loosely coupled to one another in networks, in ...
Citations
... Today, portable mobile terminals [98] and next-level advanced technologies with real-time instructions [90] assist a warehouse picker via, e.g., light-directed indicators for put-to-light and pick-to-light [85], pick-by-voice, and virtual display picking systems. Other helpers are automated product-to-picker storage and item retrieval system (e.g., automated cranes), picker-less systems (automated dispensers and robots) [85,97,99], and frequently deployed AGV [84]. In addition, automated data collection equipment facilitates data exchange using supportive data capture technologies [70] such as RFID [96], barcoding [95,100,101], and different sort of robotics [63,87,88]. ...
... Business information and SC dynamics should be united to align integration and system capabilities with 3PLs. The first recommended step is to create an SC enterprise architecture to become the foundation for all logistics systems' selection, investment, and implementation decisions [99]. ...
... In other words, having a web access configuration is a vital functionality in today's WMS [130]. A user coordinates warehouse activity by logging into the warehouse's internal database knowledge query system [99]. Operability characteristics and customization designs for the user interfaces still need further studies [80,131]. ...
Academic research on third-party logistics operators selecting warehouse management systems is scarce at best, based on found 86 area-specific studies written in English. Only 17 studies had mentions of 3PL and WMS but did not directly reference 3PL using WMS. Eighty-six studies covering four main categories contributed to understanding ongoing research in WMS characteristics and the 3PL context. One category is warehouse characteristics relevant to WMS, and the others concern the warehouse management system as its taxonomy, functions, features, and deployment considerations. Within these four categories, 17 subtopic areas were identified. WMS deployment considerations had the highest number of subtopics (ten), being the most focused area for WMS selection considerations for the system's successful implementation and operation usage. WMS functions and features category contained only a subtopic, indicating a need for additional research on operational functions in management systems and 3PL operations context. Award-winning 3PL validated our findings, utilizing their extensive industry experience. Based on the 3PLs validation review, fast-developing and technology areas, such as digitalization and the newest warehouse management technologies, were the only areas missing from the academic literature. Research is carried out to map the missing specific digitalization, technology-based research, development, innovation possibilities, and WMS sustainability-related knowledge gaps. By addressing the knowledge gap in existing literature, the study significantly contributes to understanding WMS utilization in the 3PL context, providing new insights into WMS characteristics overview, advancing research in 3PL logistics selecting WMS, and defining future research venues of WMS aspects.
... Référence Défis de la supply chain Engagement des clients (Carter et Rogers 2008 ;Danese et Romano 2013) Configuration du réseau de distribution (Ballou 2001 ;Mangiaracina et al. 2015) Gestion des stocks et réactivité (Childerhouse et al., 2002 ;Sheffi 1985) Contrats d'approvisionnement (Cachon 2002 ;Fisher et al., 1997 ; De Matta et Miller 2015) Stratégies de distribution (Frohlich et Westbrook 2001 ;Cagliano et al., 2008) Intégration de la chaîne logistique et partenariat stratégique (Bramham et McCarthy 2004 ;Aviv, 2001 ;Ng et Vechapikul 2002 ;Caridi et al. 2005 ;Fliedner 2003 ;Akkermans et al. 2003) Stratégies d'externalisation et d'approvisionnement Chen et al. (2004) Technologies de l'information et systèmes d'aide à la décision (Fiala, 2005 ;Lau et Lee 2000 ;Kobayashi et al. 2003 ;Verwijmeren, 2004 ;Themistocleous et al. 2004 ;Delen et Benjamin 2003) Les défis du partage de l'information dans la chaîne logistique (Beamon, 1998;Fiala 2005 Dans ce qui suit, nous présentons les principaux défis et problèmes, notés en gras, qui sont pertinents dans ce travail de recherche, notamment ceux liés à la collaboration, à la conception des réseaux de distribution et à la durabilité, etc. ...
Les préoccupations liées au développement durable influencent de plus en plus le comportement des clients ainsi que les stratégies des entreprises. Ainsi, l'optimisation des réseaux de distribution par la collaboration horizontale devient une nécessité. Après une analyse exhaustive de la littérature, nous avons constaté que la plupart des travaux proposant des approches quantitatives abordent le niveau de décision opérationnelle par le biais de l'optimisation de la planification du transport. Par conséquent, nous traitons dans cette thèse les deux niveaux de décision : stratégique et tactique. Le premier niveau est étudié à travers le problème de conception des réseaux de distribution collaboratifs, tandis que le deuxième niveau s'intéresse au problème de répartition des coûts et des émissions de CO2. En outre, nous pensons que réduire tous les aspects de la durabilité en un seul objectif n'est pas recommandé. Dans ce contexte, nous abordons les deux problèmes en tenant compte de la durabilité économique, environnementale et sociale. Nous proposons des modèles mathématiques pour concevoir des réseaux de distribution à deux et à trois échelons. Par ailleurs, l'implication des indicateurs de durabilité lors du partage des bénéfices permet de récompenser les partenaires qui participent au mieux à la durabilité. Dans ce contexte, nous avons développé deux approches qui utilisent les niveaux de durabilité et de flexibilité de chaque partenaire dans le but de répartir d'une manière équitable les bénéfices de la collaboration. D'autre part, plusieurs scénarios sont comparés sur la base des indicateurs proposés. Au niveau de la résolution des modèles mathématiques, l'optimisation mono-objectif est effectuée d'une façon exacte et en utilisant l'algorithme génétique et le recuit simulé, tandis que l'optimisation multi-objectif est réalisée par la méthode ε-contrainte et le NSGA-II. Les résultats et les analyses obtenus montrent que la collaboration offre toujours une meilleure performance par rapport à la non-collaboration sur tous les niveaux de durabilité. Plusieurs décisions managériales sont présentées pour appliquer correctement la collaboration horizontale et améliorer davantage sa performance en termes de durabilité
... This way of storing information does not guarantee immutability and data integrity as it allows the database administrators to alter, delete, or insert other related data records. This model and its technological components enable the sharing of information among stakeholders (Verwijmeren, 2004;Somers and Nelson, 2001). Updating and maintaining the centralized database is a crucial problem since parties are dependent on each other in the SpC, and the database requires a high level of work organization (Sreenivasaiah and Kim, 2010;Coy, 2008). ...
This thesis address the general problem of safe and secure transport of dangerous goods (TDG). The TDG is very complicated to manage because of risk for the environment and human life. Currently, it suffers from a lack of efficiency, trust, and transparency.In this thesis, we propose a novel method to specify the workflow aspects of TDG by considering all TDG process stages during its entire lifecycle. This method aims to facilitate the specifications of the TDG workflow management system that is entirely based on existing regulatory frameworks ensuring the compliance, trust, and transparency of all underlying processes. The proposed system design method is based on the so-called model-driven architecture (MDA) approach and enhancing it to consider blockchain properties. The first stage is the formal analysis of the process of TDG and its alignment with the regulatory frameworks. The proposed design method aims, at this stage, to allow the formal definition and verification of the design of the system with regard to the regulatory frameworks. The next stages of the method rely strongly on the model transformation that is a salient aspect of the proposed design method. Model transformation allows to automatically discover peer system components and authorized interactions. The last stage of the whole model transformations is the specification of digital twin profiles for all potential stakeholders. All the interactions in the real world between stakeholders are transformed into interactions in the digital world, while the interactions with the environment are achieved through the use of IoT. The proposed approach enables interactions between components of the systems (digital twins, IoT devices, etc.) only if this is compliant with the regulatory framework. Thanks to blockchain technology, our design method allows improving trust and transparency in the process of TDG from the perspective of stakeholder collaborations. Smart contract technological capabilities are also a cornerstone of the proposed solution. This thesis also contributes to improving the semantic of smart contracts to capture supply chain management specifications as well as dangerous goods specificities in terms of transportation. Dynamic concepts related to the supply chain management of dangerous goods such as time-related and geographic constraints, digital certification, anomaly detection and multi-party smart contract, managing emergencies, and shared responsibility have been addressed at the level of the smart contract. In particular, this thesis proposes applying temporal logic for the formal specification and verification of smart contracts. This thesis proposes an integrated approach for blockchain and IoT to support the dynamic aspects in the supply chain of dangerous goods. Data collected from various IoT devices along the physical supply chain (goods, vehicles, country borders, etc.) are transmitted to the blockchain and further processed by the system following the workflow logic that was specified and automatically triggering related smart contracts and corresponding actions. The last contribution in this thesis is the implementation of a proof-of-concept system to validate the different aspects of the contribution, namely the design method, the trust and transparency assurance, and the automatic triggering of actions and information flows.
... It is an information system for managing and controlling physical and information flows in a warehouse [110]. It collects and stores information on goods and storage resources and processes and forwards it to other modules of the ERP system [132]. Based on the functions it implements, WMS itself can be divided into seven basic modules for: yard management, storage assignment, storage/retrieval, inventory management, order-picking, shipping and workforce and task management [52]. ...
Technological development, automation, digitalization, networking, new forms of communication, etc. initiated a new industrial revolution, also known as Industry 4.0. It represents a new form of organization and control of the value chain in the product life cycle. By connecting and synergizing existing and new solutions and technologies of communication, data collection, exchange and analysis, production, process management, trade, etc. a new paradigm of human action, business and living has been created. A concept that is intensively changing production processes has emerged, but its effects are also visible in other areas of human activity, primarily trade, health, agriculture, logistics, etc. By applying the solutions and technologies of Industry 4.0 in the field of logistics, the concept of Logistics 4.0 was developed with the aim of achieving greater efficiency of logistics systems and processes. New technologies and solutions appear every day, but the backbone of the development of the Logistics 4.0 concept is comprised of several key technologies, such as: Internet of Things (IoT), Autonomous Vehicles (AV) and Automatic Guided Vehicles (AGV), Artificial Intelligence (AI), Virtual Reality (VR) and Augmented Reality (AR), Big data, Data mining, Blockchain, Cloud Computing (CC), 3D printing, etc. The aim of this paper was to define and describe in detail the aforementioned technologies, as well as the possibilities of their application in the logistics systems and processes through a review of the relevant literature in this field. It can be concluded that logistics, as a multidisciplinary science, represents a fertile ground for the acceptance and further development of existing modern technologies, but also the initiator and incubator of new technologies that could easily go beyond logistics and become part of the family of Industry 4.0 solutions.
... Integrative ICTs enable coordination between partners and greater flexibility, which is required for collaboration among networked organizations. They have the task of ensuring communication between the system and the user, providing transparent information and efficient management of the supply chain [8]. ...
Successful agribusiness management requires quality and up-to-date information, which is a challenge for agribusiness managers. The development of the agribusiness sector requires the integration of knowledge in the field of information and communication technologies (ICT) and their application in practice. It is evident that
platforms already exist, which make it easier for farmers to make decisions, as they provide information on prices, market conditions, competition, etc. The aim of the paper is to investigate and demonstrate the possibilities of implementing integrated
ICT in the agribusiness sector and the impact on the utilization and development of competitive advantages of agricultural entities. The results of the research show that information illiteracy among farmers is less prevalent, lack of relevant content is evident, as well as the willingness to adopt modern ICTs. However, farmers are
more likely to use ICT, which raises optimism about modernizing production and achieving better results. The problem is the content of websites, which are static and need to be changed, to be interactive and content. As the main motive for using ICT, farmers cite support in business organization, access to meaningful information, saving time and money, while the main obstacles are relatively high prices, information illiteracy, disinterest and personal perceptions. Increased
competitiveness and better utilization of comparative advantages in agribusiness requires the use of integrated ICT on a larger scale.
... This topic was used to form the group as one of the found five main topic groups. These publications (Anonymous, 2000;Levans, 2010;D/C 2004D/C Expo, 2004Moberg and Speh, 2004;Verwijmeren, 2004;Trebilcock, 2007b;Richards, 2014;Michel, 2016b) touch on the topic of logistics service providers' business operations and also refer to warehousing logistics in some way. Yet, there is not much written about 3PLs and WMS. ...
... As for this research, it should be mentioned that only one article [Verwijmeren, (2004), p.168] was found where wholesalers were mentioned as potential users of WMS in addition to 3PLs (and in-house operations). In some publications (Anonymous, 2000;Verwijmeren, 2004;Trebilcock, 2007b;Michel, 2016b), WMS designed for 3PL usage was discussed. ...
... As for this research, it should be mentioned that only one article [Verwijmeren, (2004), p.168] was found where wholesalers were mentioned as potential users of WMS in addition to 3PLs (and in-house operations). In some publications (Anonymous, 2000;Verwijmeren, 2004;Trebilcock, 2007b;Michel, 2016b), WMS designed for 3PL usage was discussed. Verwijmeren (2004) was the only study where someone other than 3PL was mentioned as the WMS operator. ...
Publication reveals the current literature knowledge, intersection of 3PLs and warehouse management systems. The systematic literature review found 58 relevant publications, which were studied and classified to five most apparent and clearly present main groups. Groups were: a clear reference in the publication to WMS and 3PLs, WMS warehouse characteristics, WMS taxonomy division, WMS functions scope and WMS deployment considerations. Only eight publications were found to consider 3PLs using WMSs. The found literature did not contain any publications directly discussing 3PLs running and installing a WMS with the goal of running customers’ warehouses. Some found publications used IMS as a substitute for WMS, even when the meaning is not the same. Given the systematic review process, the large number of covered database and wide range of keywords, the scarcity of results was surprising. Not even a publication with content of 3PLs selection a proper WMS for customer warehouse operations was found. Results indicate strong need to fill this research gap.
... Similarly, operational application such as RFID and EDI enables the firm to process information rapidly (Droge and Germain, 2000). According to Verwijmeren (2004), strategic application is not sufficient and requires additional applications to support the coordination among various functions. We argue that strategic application allows the firm to track real-time information and knowledge and requires tactical and operational application to execute such information for a specific purpose. ...
... Our findings indicate that strategic application leads to tactical and operational application, while tactical application leads to operational application. These findings are in line with those of previous studies of Autry et al. (2005) and Verwijmeren (2004) who stated that strategic application leads to the implementation of tactical and operational application. ...
... However, strategic application can improve SC learning through the indirect effect of tactical and operational application. The mediating role of tactical and operational application received evidence in previous literature including the work of Verwijmeren (2004) who stated that due to central server and procedural software, strategic application lacks necessary flexibility and autonomy and requires additional application on top of strategic application. Therefore, firms cannot expect to improve SC learning by implementing strategic application alone. ...
Purpose
Despite the recognition that supply chain (SC) learning is important for competitive advantage, little is known how to enable such learning. The purpose of this paper is to examine the effects of information technology (IT) application on different types of SC learning (i.e. internal, customer and supplier learning) and service performance.
Design/methodology/approach
This study applies structural equation modeling to test the conceptual model based on data collected from 213 manufacturing firms in China.
Findings
Although strategic application has a direct and negative relationship with all three dimensions of SC learning, it indirectly and positively improves SC learning through tactical and operational application. The authors observe that tactical application is positively related to all three dimensions of SC learning, while operational application improves internal and customer learning only. The authors also notice that internal and customer learning are positively related to service performance.
Research limitations/implications
This study classifies IT application into strategic, tactical and operational dimensions, which may not adequately cover the entire set of IT application portfolio.
Practical implications
The findings suggest managers to use corresponding IT application to improve SC learning and service performance.
Originality/value
This study provides a new framework to understand the relationships between IT application, SC learning and service performance.
... If from the supply chain management we emphasize the activities associated with the optimal planning, organization and control of transport operations, in this field there is a wide range of areas for implementing "smart logistics" concept. As a rule, they are united under the title "Transport Management System" (TMS) (Verwijmeren, 2004). ...
The article argues that the fundamental transformations of business processes, characteristic of the era of digital economy, have so far affected Russian motor transport industry to a small extent. Digital transformation assumes a cardinal revision of the role of information technologies in management of the transportation process, based on a deep and comprehensive analysis of data, a fundamental change in approaches to organization of road transport production.
To this end, it is proposed to consider the concept of enterprise architecture, covering various aspects of shaping different aspects of a transport and logistics company, as well as methods for modeling system solutions. The article analyzes transportation management system solutions, compares different approaches to the architecture of an enterprise, tools of its development like ER-charts, basic notations, life cycle, business motivation model. The suggested model semantically links real objects, ITand business processes, social aspects, and structure organisation of an enterprise.
... This way of storing information, as shown in Fig. 2, allows the administrators of the database to modify, delete or insert other related information. This model and its technological components enable the sharing of information among stakeholders, and these types of architectures are usually implemented in the current systems, ERP systems [16] [17]. Updating and maintaining the centralized database is a crucial problem since parties are dependent on each other in the SC, and the database requires a high level of work organization [15] [18]. ...
The issues of trust in the area of supply chain management are an immense concern among the stakeholders cooperating in the supply chain. For a sustainable process of logistics and transportation, an efficient information sharing is considered crucial. The current systems that serve as a base for the operations in supply chain have several drawbacks in terms of data security and trust among stakeholders, who share information as part of their cooperation. Information is shared in a paper-based or semi-digitalized way due to the lack of trust or risk of competitive disadvantages in the current systems. This paper aims to analyze the trust issues in supply chain management and propose new ways of improving trust by considering these issues at the design level. Technological components are analyzed for designing new models and to support the implementation of new architectures that improve trust in a systems which manage supply chain processes.
... The WMS is a management information system that controls the physical and informative flows within the warehouse, involving both inbound and outbound processes (Shiau and Lee, 2010). A WMS gathers, stores and provides information on products, resources and processes, recording the transactions and transferring them to other modules of the company's ERP (Verwijmeren, 2004). Some technologies as Auto-ID Data Capturing or Radio-frequency identification may be integrated to support the data collection (Ramaa et al., 2012). ...
Purpose
The purpose of this paper is to illustrate an original decision-support tool (DST) that aids 3PL managers to decide on the proper warehouse management system (WMS) customization. The aim of this tool is to address to the three main issues affecting such decision: the cost of the information sharing, the scarce visibility of the client’s data and the uncertainty of quantifying the return from investing into a WMS feature.
Design/methodology/approach
The tool behaves as a digital twin of a WMS. In addition, it incorporates a set of WMS’s features based both on heuristics and optimization techniques and uses simulation to perform what-if multi-scenario analyses of alternative management scenarios. In order to validate the effectiveness of the tool, its application to a real-world 3PL warehouse operating in the sector of biomedical products is illustrated.
Findings
The results of a simulation campaign along an observation horizon of ten months demonstrate how the tool supports the comparison of alternative scenarios with the as-is, thereby suggesting the most suitable WMS customization to adopt.
Practical implications
The tool supports 3PL managers in enhancing the efficiency of the operations and the fulfilling of the required service level, which is increasingly challenging given the large inventory mix and the variable clients portfolio that 3PLs have to manage. Particularly, the choice of the WMS customization that better perform with each business can be problematic, given the scarce information visibility of the provider on the client’s processes.
Originality/value
To the author’s knowledge, this paper is among the first to address a still uncovered gap of the warehousing literature by illustrating a DST that exploits optimization and simulation techniques to quantify the impacts of the information availability on the warehousing operations performance. As a second novel contribution, this tool enables to create a digital twin of a WMS and foresee the evolution of the warehouse’s performance over time.
