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Logistics InformationLogistics Information

SystemsSystems

By

Mr. Kartikay Singh Rana

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Contemporary Issues inContemporary Issues in

Information SystemsInformation SystemsQuality 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 ofArchitecture and Objectives of

Information SystemsInformation Systemsy Positioning Information in Logistics

Logistics Information Systems include coordination

flows and operational flows

Interconnection of multiple company systems

These two flows should:

x freely interchange data

x

integrate coordination activities into operationalactivities

x be flexible, not rigid.

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Logistics Information FlowLogistics Information Flow

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Examples of Information FlowsExamples of Information Flows

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Logistics Information SystemsLogistics Information Systems

y Definition

An interacting structure of people, equipment,

and procedures that together make relevantinformation available to the logistics manager

for the purposes of planning, implementation,

and control.2

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Logistics Information SystemsLogistics Information Systems

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Logistics Information Systems:Logistics Information Systems:

P

lanning SystemP

lanning Systemy Provides decision support for logistics

managers

y

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

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Logistics Information Systems:

Purchasingy Purchasing moves online

Responsible for short-term, day-to-day

functioning of the logistics system.

Include technologies that help managewarehousing, transportation, international

trade, and inventory.

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Knowledge ManagementKnowledge Management

y 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:Logistics Information Systems:

R

eports and Outputs SystemR

eports and Outputs System

y Communication occurs only if themessage keys into the receivers values

and responds directly to the needs of therecipient.

y Types of reports

Planning reports Operating reports

Control reports

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Major Drivers of the Connected Economy:Major Drivers of the Connected Economy:

CustomerCustomer--Centric Value Web ModelCentric Value Web Model

y Customer-Centric Value Web Model

Customers of all types are expecting more

from their suppliers, at faster speeds, andwith increasing reliability.

Traditional linear supply chains are being

replaced by new, consumer-centric

approaches.

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Contemporary LogisticsContemporary Logistics

Information TechnologiesInformation Technologies

y Bar coding

Most commonly used automatic identificationtechnology

Consistency of this technology importantfactor in efficiency and effectiveness.

y RFID Radio frequency identification

It uses radio waves to automatically identifypeople or objects .

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y Electronic Data Interchange (EDI) - is thestructured transmission of data between

organizations by electronic means .It is used to

transfer electronic documents or business datafrom one computer system to another

computer system, i.e. from one trading partner

to another trading partner without human

intervention.

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EDI versus Traditional MethodsEDI versus Traditional Methods

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Contemporary LogisticsContemporary Logistics

Information TechnologiesInformation Technologies

y Artificial intelligence/expert systems

Attempts to transfer human intelligence to amachine.

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 LogisticsContemporary Logistics

Information TechnologiesInformation Technologies

y RF technology Uses radio frequency to transmit computer

outputs, possibly from an expert system tohuman operated devices, such as, a forklift.

Optimizes quality, efficiency, and accuracy.

y Onboard computers and satellite tracking Uses systems such as GPS to track and

communicate with mobile and/or remotevehicles.

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Adapting to New InformationAdapting to New Information

TechnologiesTechnologies

y Conclusion

The organization must have the financial

resources needed to assure a smooth, full

implementation, and the people willing to acceptand use new technologies.

Firms must create opportunities for interaction

and team efforts among logistics managers and

those others most knowledgeable aboutinformation technologies.

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