Introduction
Logistics is one of the most significant components of the operations of business organizations. A full-fledged logistic system can take an organization to the path of sustained growth. Logistics can be defined as “strategically managing the procurement and movement of goods and storage of inventory in all forms.” (What is logistics? What does it mean to projects, 2001, Definition, para.1)
Logistics management is a challenging task in today’s business world. The application of modern technology in logistics management by business organizations will improve the performance of the logistics system as well as the organization as a whole. In a food company, proper logistics management plays a crucial role, as most of the items traded in the F&B industry are highly perishable. Here, the timely movement of goods plays a key role in the business.
An overview of U.S. Foodservice
U.S. Foodservice is the #2 foodservice supplier in the U.S., offering worldwide food services. The company mainly supplies food products like meats, frozen foods, dry foods, seafood, etc., to hotels, restaurants, etc. The company’s “Suppliers.usfood.com is a powerful e-business information delivery vehicle—a pathway to exciting new information capabilities for the U.S. Foodservice® supplier community. Available 24/7, this site offers a fast and reliable way to access invoice and compliance reports to be searched, printed, and downloaded for easy analysis whenever you have time.” (Suppliers, 2009, para.1).
Technology improves the management of logistics
In the modern world, where technology is growing at a fast pace, modernization has to play a pivotal role in effective logistics management. Technology can help logistics in many ways for improving its efficiency in every industry, including the food industry. Food items cannot be kept for a long period of time due to their perishing nature. Factors like appropriate temperature, well-cleaned machines, packaging, and distribution are required to be considered while storing food items.
Bob Howard in U.S. Foodservice used a wide range of knowledge and technology for the day-to-day functioning of U.S. Foodservice, mainly in the areas of packaging and distribution. As in the case of U.S. Foodservice, information technology has helped a lot in their logistics activities, especially in obtaining information about the suppliers, staff, technology, etc. About $300000 has been spent by U.S. Foodservice Company on its technology which has entailed tremendous changes in its business facility. These can be described as follows:
- The advent of Voxware’s Voice Logistics shows the efficiency of technology which helped in the control of the distribution center. It “is a voice-directed handling technology with application in order picking, batch picking, replenishment, catch weight, and cage management – directives that fill a warehouse employee’s work shift.” (Candi, 2007, p.2). The transformation from the traditional picking and storage system to the new system became possible, and it rebutted. Improvement in the bottom line and increased efficiency can be seen in U.S. Foodservice, using Voxware technology. Enhanced sales, gross profit, and working capital, reduction in operating expenses, and overall effectiveness of the organization are the other benefits derived from voice-directed technology.
- Voice recognition software is another major technology development in the U.S. Foodservice, which helped in the monitoring of personnel and products. In this technology, the pre-recorded voice of the employees will help in order selection and warehousing. A direct link is formed with the U.S. Foodservice customers and warehouse workers by integrating U.S. Foodservice software, and thus providing better and quick service and response to the customers. Workers’ movement is also controlled and maximized with the help of programming. The system redirects if the path is blocked. Also, voice technology can send real-time data to the labor-management software helping in the warehouse labor performance information analysis.
- Packaging and protection of food items from contamination were improved with the introduction of Nanotechnology in the U.S. Foodservice. Thus providing customers with fresh foods. Storage area improvement and the creation of contemporary agricultural techniques are also the results of nanotechnology.
- Easy identification of vendors is possible through reinforced security policies, which shows another example of technical efficiency in logistics.
One of the main contributions of technology is Voxware Voice Logistics, and from the article, it is clear that the Voxware voice technology helped U.S. Foodservice in optimizing the warehouse operation with greater accuracy and productivity. “Chuck Ernst, director of warehouse systems for the distributor, said the technology had reduced the number of mispicks by 75 percent.” (U.S. foodservice installs voice- recognition system, 2005). The introduction of Voxware improved a variety of logistical tasks like picking, receiving, inspection, processing of materials, etc.
Conclusion
The introduction of modern technology has resulted in a transformation from the old concept of the supply chain to its new stage. One of the major contributions of technology is e-logistics. The Internet also has a great impact on the creation of direct marketing of products, avoiding the risks in the supply chain. Most of the companies now develop e-SCM software for improving their logistics management. One best example is U.S. Foodservice with Voxware Voice Logistics. Besides, this law also helped in improving the acquisition of raw material, its storage, and supply whenever required. Reshaping of the traditional logistics management with the four critical movements like deconstruction, dematerialization, disintermediation, and deverticalization have occurred with the advent of e-logistics.
References
- Candi, S C. (2007). Everything but the kitchen – US Foodservice dishes it out and delivers it: Efficiency enhancements. 2. (Provided by the customer).
- Suppliers: Keeping suppliers in the know 24/7. (2009). Beyond the Plate Means Going.
- U.S. foodservice installs voice- recognition system. (2005). BNET.
- What is logistics? What dos it mean to projects: Definitions. (2001). Project Monitor.