Logistics Information Systems

By
Mr. Kartikay Singh Rana
Logistics Information Systems:
Introduction

 Many firms view effective management of

logistics and supply chain activities as:
◦ Necessities of overall cost efficiency, and
◦ Keys to ensuring their ability to competitively
price their products and services.1
 Effective information management also can help
ensure that a firm meets the logistics needs of its
customers.

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Contemporary Issues in Information
Systems
Quality of Information: Two major issues
1. Availability of Information
◦ Managers may be uncertain of needs.
◦ Supplied data not consistent with needs.
2. Accuracy of Information
◦ Once considered “bad”, it is ignored!
◦ Accounting practices must accommodate logistics
needs.

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Architecture and Objectives of
Information Systems
Information System Building Process
◦ Four key types of IS people needed:
 Analysts to design processes and programs
 Programmers to build and produce software
 Technicians to build hardware infrastructure and
keep it running
 Data managers to build data warehouse

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Architecture and Objectives of
Information Systems
 Positioning Information in Logistics
◦ Logistics Information Systems include coordination
flows and operational flows
◦ Interconnection of multiple company systems
◦ These two flows should:
 freely interchange data
 integrate coordination activities into operational
activities
 be flexible, not rigid.

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Logistics Information Flow

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Examples of Information Flows

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Logistics Information Systems
Definition
◦ An interacting structure of people, equipment,
and procedures that together make relevant
information available to the logistics manager
for the purposes of planning, implementation,
and control.2

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Data Mining and Decision Support
Systems
Data mining process is designed to identify
the root cause of materials & information flow ,
and major opportunity for improving processes .
Decision Support System are computer
based decision support tools ,which provide
solutions problems .
Logistics Information Systems

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Logistics Information Systems: Planning
System
Provides decision support for logistics
managers
Logistics functional databases
◦ Comprehensive relational database that
contains the type of information needed to
make effective decisions.
◦ Greatest use in the transportation, inventory,
and product areas with warehousing and
customer areas showing less progress.

Management of 11
 Logistics Information Systems: Purchasing

Purchasing moves online

◦ Responsible for short-term, day-to-day
functioning of the logistics system.
◦ Include technologies that help manage
warehousing, transportation, international
trade, and inventory.

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Knowledge Management
To maximize the results of an
environmental scan, the logistics manager
needs to consult:
◦ Logistics area employees
◦ Channel partners
◦ Internal audit or external consultant
◦ Other internal logistics initiatives

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Logistics Information Systems: Reports
and Outputs System

Communication occurs only if the

message keys into the receiver’s values
and responds directly to the needs of the
recipient.
Types of reports
◦ Planning reports
◦ Operating reports
◦ Control reports

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Major Drivers of the Connected Economy:
Customer-Centric Value Web Model
Customer-Centric Value Web Model
◦ Customers of all types are expecting more
from their suppliers, at faster speeds, and
with increasing reliability.
◦ Traditional linear supply chains are being
replaced by new, consumer-centric
approaches.

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Contemporary Logistics Information
Technologies
Bar coding
◦ Most commonly used automatic identification
technology
◦ Consistency of this technology important
factor in efficiency and effectiveness.
RFID – Radio frequency identification
It uses radio waves to automatically identify
people or objects .

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Electronic Data Interchange (EDI) - is the
structured transmission of data between
organizations by electronic means .It is used to
transfer electronic documents or business data
from one computer system to another computer
system, i.e. from one trading partner to another
trading partner without human intervention.
EDI versus Traditional Methods

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Contemporary Logistics Information
Technologies

Artificial intelligence/expert systems

◦ Attempts to transfer human intelligence to a
machine.
◦ The process of developing the knowledge base
by interviewing a series of “experts” regarding
the data as well the logic used to make
decisions .

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 Contemporary Logistics Information
Technologies

RF technology
◦ Uses radio frequency to transmit computer
outputs, possibly from an expert system to human
operated devices, such as, a forklift.
◦ Optimizes quality, efficiency, and accuracy.
Onboard computers and satellite tracking
◦ Uses systems such as GPS to track and
communicate with mobile and/or remote vehicles.

Ed. 20
Adapting to New Information
Technologies
Conclusion
◦ The organization must have the financial
resources needed to assure a smooth, full
implementation, and the people willing to accept
and use new technologies.
◦ Firms must create opportunities for interaction
and team efforts among logistics managers and
those others most knowledgeable about
information technologies.

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THANKYOU FOR LISTENING