A dynamic logistics process knowledge-based system – An RFID multi-agent approach

Abstract

Purpose

This paper proposes a real-time knowledge support framework for the development of an RFID-multi-agent based process knowledge-based system which has the ability to solve dynamic logistics process management problems.

Design/methodology/approach

The proposed system is developed with “real-time process management” capability which automatically identifies current process status, performs the process logic checking/reasoning, and, provides process knowledge support to staff members when they are tackling logistics activity problems. The unique feature of this on-line knowledge-based system, which enables it to enhance the performance of logistics organizations, is a process management engine incorporating radio-frequency identification (RFID) and multi-agent (MA) technologies.

Findings

The capability of the proposed system is demonstrated through an application case study in Eastern Worldwide Company Limited. The result reveals that both performance of operations and the utilization of resources have improved significantly.

Originality/value

The proposed system is a novel approach which leverages logistics performance and facilitates the creation of a learning organization through the provision of real-time knowledge support for those who handle logistics operations.

Article type

Research Paper.

Introduction

Since the 1990s, logistics and supply chain management (SCM) have become powerful sources for enterprises to sustain competitive advantage [9], [33]. Nevertheless, the growing importance of logistics worldwide as well as the increasing complexity of logistics networks and the service requirement of customers has become a challenge to logisticians who are now expected to deliver superior logistics services. The major concern of logisticians is the strategic use of resource capabilities and distinctive competencies to achieve competitive advantage [42], [29]. According to Meso and Smith [28], a strategic asset is defined as valuable, non-substitutable and one that can not be completely imitable by others. Chow et al. [5] stated that one of the strategic assets frequently discussed is knowledge. Logistics firms own different technological and organizational knowledge in terms of management skill, corporate culture, rules, procedures, standard operations procedure, logistics expertise and customer loyalty. It is how these resources are utilized to create products and services that determine the success of the firm. In fact, the knowledge within a logistics firm is a collective memory of past solutions, experience and rules to determine how resources are utilized to deliver services or products. This cannot be transferred to other companies directly. As there is not any firm that possesses identical knowledge within the same industry, therefore, it is necessary to well align this idiosyncratic resource within the core business operations.

In general, logistics is a process-oriented business which involves numerous processes while performing different logistics services. Within the logistics processes, input attributes such as raw materials, people, resource, information, knowledge commitments are transformed into outputs representing desirable results through a set of processes or procedures. While some of the procedures can be done automatically, most of them must be completed manually. In addition, since logisticians are usually involved in different kinds of logistics processes, their experience and knowledge in operating these processes becomes important. Since it is impossible for a logistics manager to supervise all staff members simultaneously, written documents such as standard operations procedure (SOP), rule and operation manual are introduced as guides for them to follow. However, as the perceptions of staff members are usually different from those of the process designer, instead of following general guides, they tend to rely on their intuition, cognitive ability and experience, which is biased and human-oriented in nature. A satisfactory level of service cannot be maintained easily. In order to avoid problems, it is necessary for logistics staff members working in the logistics industry to be able to acquire instant appropriate guidelines and process knowledge.

In this paper, an intelligent system called logistics process knowledge-based system (LPKBS) is presented, the aims of which are (i) to describe the real-time status of process environments through diagnosing multiple real-time data/information sources, (ii) to address potential problems within logistic processes, (iii) to deliver logistic process procedures (explicit knowledge) and logistic process logic (tacit knowledge) to staff members who are orchestrating and performing various logistics processes satisfactorily in real time, and, (iv) to provide information of real-time logistics process progress status, thereby helping logisticians systematically to manage logistics processes and resources effectively. In order to develop a dynamic knowledge support framework, the combination of an automatic real-time data collection technology called radio frequency identification (RFID), and the multi-agent technology is proposed.

The rest of this paper is organized as follows: Section 1 is the introduction; supportive literature is presented in Section 2. The system architecture of LPKBS is illustrated in Section 3. The case study of applying the system for improving the performance of logistics operations in the Eastern World Wide Company (EWW), which is one of the largest Logistics Service Companies in Hong Kong and southern China region, is presented in Section 4. The results and discussion are shown in Section 5 while the conclusion about the use of LPKBS and a suggestion of further development are set out in Section 6.