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Principles of Logistics Information System

Availability Logistics information must be readily and consistently available. Information may be regarding order status, inventory status, etc Rapid availability is very important to respond to decisions. Information availability can reduce customer requirements and improve management uncertainties in operations and planning

Accuracy Logistics information must reflect the current status of all the activities like inventory levels, customer orders etc. E.g.: The actual level of inventories should match with the LIS reported inventory levels. However if there is a large difference between the actual inventories and those indicated by the information system inventory levels, buffer stock or safety stock would be required to cover up the uncertainty.

Timeliness The logistics information must be timely to provide quick management feedback. Timeliness is measured in terms of delay that takes place between the commencement and occurrence of an activity and when the activity is actually visible in the logistical information system. E.g.: a company may receive a certain order which a customer desires to be executed urgently. However, the database information system of the company is not fed with the details regarding the urgency of the order for whatever reasons. This will cause delay in the actual execution of the order. This delay indicates ineffectiveness in the planning process. Similar delays can occur when the goods are moved from VVIP to finished goods. All this calls for timely management controls so that corrective actions can be taken to minimize loss. Hence timely information is very necessary to reduce uncertainty.

Logistics information system
Converting data to information, portraying it in a manner useful for decision making, and interfacing the information with decision-assisting methods are considered to be at the heart of an information system. Logistics information systems are a subset of the firm’s total information system, and it is directed to the particular problems of logistics decision making.

There are three distinct elements that make up this system:

the input
the database and its associated manipulations

and the output

Logistics: The Inputs

The inputs are data items needed for planning and operating logistics system obtained from sources like customers, company records, and published data and company personnel.
Logistics: The Database and Its Associated Manipulations

Management of the database involves selection of the data to be stored and retrieved, choice of the methods of analysis and choice of the basic data-processing procedures.
Logistics: The Outputs

The outputs of a logistics information system include:

summary reports of cost or performance statistics,
status reports of inventories or order progress,
exception reports that compare desired performance with actual performance, and
reports that initiate action.

 

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