LOGISTICS INFORMATION

1. OPERATIVE LEVEL
The lowest level of pyra!" refers to tra#sa$t!o#s a#" e#%&!r!es. E'aples of th!s
a$t!v!t!es are or"er e#%&!r!es( or"er pro$ess!#)( sto$* + stat&s $he$*s( ,!ll of la"!#)
preparat!o# a#" Tra#sportat!o# + rate. O#ly !plee#te" )&!"el!#es are )!ve# they follow
)&!"el!#es. S!#$e there are "!verse people therefore e'te#s!o# of !#forat!o# !s ore .
-. S.PERVISOR/ LEVEL
I#forat!o# of th!s #at&re !s &se" 0y the s&perv!sory staff . Say( wareho&se +s&perv!sor1s
&st e'er$!se $o#trol over spa$e &t!l!2at!o# !#ve#tory a#" La0o&r Pro"&$t!v!ty !# or"er +
0!ll!#) operat!o#s. They prepare sh!ft pla#( they *eep asse0ly rea"y .
A tr&$* +fleet a#a)er &st have the #e$essary people( e%&!pe#t a#" spare +parts to
a$$opl!sh the tra#sportat!o# !ss!o# a#" s$he"&le "el!ver!es .
3. MI44LE MANAGEMENT LEVEL
5ere !""le a#a)ee#t level !s $o#$&rre" w!th eval&at!o# of !#ve#tory $o#trol l!!ts (
s&ppl!er eval&at!o#( Carr!ers sele$t!o#( pla##!#) for seaso#al spa$e a#" tra#sportat!o#
#ee"s et$ are tere" as Ta$t!$al Pla##!#) . They "e$!"e a#" s&perv!sor follows. 6hat !s
the ROL( wh!$h !#ve#tory $o#trol syste to follows. 6hat sho&l" 0e the 0&ffer sto$* of
a# !te.
7. TOP MANAGEMENT LEVEL
Strate)!$ Pla##!#) 8 Lo#) Ter Pla##!#) are the areas where top a#a)ee#t wor*s .
There a$t!v!t!es !#volve + sett!#) of )oals( pol!$!es a#" o09e$t!ves( "e$!"!#) o# the overall
lo)!st!$al str&$t&re a#" "eter!#!#) the reso&r$es #ee"e" for the s&pply + "!str!0&t!o#
tas* . all pol!$!es ( )oals( #e't three years what to pro"&$e ( s&ppl!er sele$t!o# .

Follow!#) 7 pr!ary a$t!v!t!es ta*e pla$e w!th!# the lo)!st!$ !#forat!o# syste :;
1. 4ata flow fro e'ter#al so&r$es .
-. Pro$ess!#) a#" stora)e of !#forat!o# w!th!# the f!r .
3. Co&#!$at!o# of "ata for stora)e a#" pro$ess!#) to the "e$!s!o# a*er !# the
for of reports.
7. Co&#!$at!o# of "e$!s!o# to $&stoers a#" the!r fee"0a$* .
1. E'ter#al I#forat!o# Syste
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A so&#" e'ter#al lo)!st!$s I#forat!o# syste !s 0ase" o# e#l!st!#) the $ooperat!o# of
$&stoers a#" prov!"!#) a"e%&ate a#" releva#t !#forat!o# for a"va#$e pla##!#)(
operat!o# a#" $o#trol of Lo)!st!$s a$t!v!t!es . Co;or"!#at!o#s !s re%&!re" 0oth( 0oth
w!th!# a#" o&ts!"e the or)a#!2at!o# for the pla##!#) 8 $o#trol of lo)!st!$s a#" other
f&#$t!o#s of a#a)ee#t .
The SO.RCE of !#forat!o# are the $&stoers theselves a#" !#forat!o# $a# 0e
$olle$te" thro&)h the sales staff . I#forat!o# o# the follow!#) aspe$ts !s $olle$te" :
A< Or"er patter# of $&stoers
,< Mater!al ha#"l!#) syste ava!la0le
C< Re;or"er po!#t of the $&stoers
4< Or"er!#) pro$e"&re of the $&stoers
Follow!#) !#forat!o# !s "es!ra0le fro var!o&s !#ter#al "eparte#t for the e'ter#al
!#forat!o# syste .
A< P&r$has!#) + Copo#e#ts( $&stoers re%&!ree#ts
,< Pro"&$t!o# + Pro"&$t prefere#$e( pro"&$t perfora#$e( pa$*!#) et$.
C< Mar*et!#) + Sales str&$t&re( sales proot!o# efforts( a# power( $opet!tor1s
a$t!v!t!es et$ .
4< F!#a#$e a#" Co#trol + Sales stat!st!$s $re"!t rat!#)( f!#a#$!al $apa$!ty et$ .
E< Phys!$al 4!str!0&t!o# + Sales stat!st!$s( !#ve#tory $o#trol( 6areho&se lo$at!o#(
ater!al ha#"l!#) syste et$ .
-. I#ter#al I#forat!o# Syste
I#forat!o# flow w!th!# the or)a#!2at!o# !s tere" o# !#ter#al !#forat!o# syste.
Follow!#) "eparte#t; w!se !#forat!o# !s #ee"e" :
A< P&r$has!#) :
!= Total lo)!st!$s $osts of p&r$has!#) fro "!ffere#t s&ppl!er a#" s&pply po!#ts .
!!= Ro&t!#) !#str&$t!o# for !#;0o&#" ater!als a#" s&ppl!ers .
!!!= Stat&s of !#;0o&#" ater!als 8 s&ppl!ers.
!v= Naes( a""resses et$ .
v= 4el!very re%&est "ea" l!#es
v!= S&ppl!er pr!$es 8 pr!$e "!s$o&#ts
v!!= Alter#ate so&r$es of s&pply 8 pro$ess et$ .
,< Pro"&$t!o#
!= 6areho&se $apa$!ty for raw ater!als 8 f!#!she" pro"&$ts .
!!= Pro"&$t!o# %&a#t!t!es 8 pla##!#) pro"&$t.
!!!= 6areho&se ater!al ha#"l!#) syste .
!v= 4el!very re%&!ree#ts.
v= Stat&s of !#0o&#" s&ppl!es .
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v!= Lo)!st!$al !##ovat!o#s
v!!= Pro"&$t!o# $apa$!ty 8 s$he"&l!#) et$ .
C< Mar*et!#)
!= Lo)!st!$al $osts of alter#ate levels of $&stoers serv!$e( say #&0er of wareho&ses
#earer to $&stoer.
!!= Perfora#$e !# eet!#) $&stoer serv!$e sta#"ar"s v!2. %&a#t!ty( %&al!ty( t!ely
"el!very et$.
!!!= Copet!t!o# >lo)!st!$s $osts .
!v= C&stoer $opla!#ts
v= Sales $ost ?salary( fa$!l!t!es( e'pe#ses=
v!= Pr!$es 8 pr!$e a"9&ste#ts ?"!s$o&#ts=
v!!= Spe$!al $&stoer re%&!ree#ts + v!2. spe$!al feat&re $olor( "es!)# et$ .
4 F!#a#$e
!= ,&")et for phys!$al "!str!0&t!o# $osts
!!= Var!o&s $osts est!ate
!!!= Cap!tal !#veste#t re%&!ree#ts
!v= Fre!)ht ,!ll ; a&"!t!#)
v= Cre"!t pro$e"&re
v!= F!#a#$!al perfora#$e et$. ?prof!ts=
E< Serv!$e a)e#$!es
!= Rate a"9&ste#ts
!!= Re%&est for %&otat!o# for re%&!ree#ts
!!!= Fre!)ht rates
!v= Carr!er rates( serv!$e @ ava!la0!l!ty et$
LOGISTICS INFORMATION S/STEM 4ESIGN
Follow!#) 7 a9or $o#s!"erat!o#s for "es!)#!#) the LS;
!= The "e$!s!o# to 0e a"e !# the or)a#!2at!o# at ea$h level of
a#a)ee#t
!!= The re%&!ree#ts of the syste + the !#p&t re%&!ree#ts 8 so&r$es(
vol&e( %&al!ty of "ata( a##er !# wh!$h "ata to 0e $olle$te".
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!!!= The Re%&!ree#ts of $o#trol over the syste + operat!o# for the
syste( #o. of $op!es to who !#forat!o# to 0e se#t et$.
!v= I#p&t 8 O&tp&t 4ata + I"e#t!fy po!#ts of $olle$t!o# of "ata( "es!)#
forats( arra#)e "ata e#try 8 prepare var!o&s reports for var!o&s
"epots .
Pr!#$!ples of Lo)!st!$s I#forat!o#
?1= Ava!la0!l!ty
Lo)!st!$s !#forat!o# sho&l" 0e rea"!ly a#" $o#s!ste#tly ava!la0le .
Rap!" ava!la0!l!ty !s #e$essary to respo#" to $&stoers a#" !prove a#a)ee#t
"e$!s!o#s.
e.). or"er a#" !#ve#tory stat&s.
?-= A$$&ra$y
A$$&ra$y !s "ef!#e" as the "e)ree to wh!$h LIS reports at$h a$t&al phys!$al $o&#t for
stat&s. Lo)!st!$s !#forat!o# &st refle$ts 0oth $&rre#t stat&s a#" per!o"!$ a$t!v!ty for
eas&res s&$h as $&stoer or"ers a#" !#ve#tory levels.
?3= T!el!#ess
I#forat!o# sho&l" 0e t!ely prov!"e %&!$* a#a)ee#t fee"0a$* .T!el!#ess refers to
the "elay 0etwee# whe# a# a$t!v!ty o$$&rs a#" whe# the a$t!v!ty !s v!s!0le !# the
!#forat!o# syste .
T!ely !#forat!o# re"&$es &#$erta!#ty a#" !"e#t!f!es pro0les( th&s re"&$!#) !#ve#tory
re%&!ree#ts !#$reas!#) "e$!s!o# a$$&ra$y .
?7= Fle'!0!l!ty
It sho&l" 0e fle'!0le for 0oth $&stoers a#" $opa#y .O#e wa#ts !#vo!$es for all h!s
reta!l store a#" a#other wa#ts o#e !#vo!$e for all reta!l stores .
?A= Appo!#te#t forat
Lo)!st!$s !#forat!o# sho&l" 0e appropr!ately foratte" so that they $o#ta!# the r!)ht
!#forat!o# !# the r!)ht for a#" !# the r!)ht or"ers .
?B= E'$ept!o#al
If there !s lar)e or"er all of a s&""e#( pro"&$t hav!#) l!ttle or #o !#ve#tory( "elaye"
sh!pe#ts( "e$rease" !# operat!#) pro"&$t!v!ty( LIS sho&l" ta*e $are of all th!s fa$tors .
Types of I#forat!o# Syste
!= E'ter#al I#forat!o# syste

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A so&#" e'ter#al lo)!st!$ !#forat!o# syste !s 0ase" o# e#l!st!#) the $o;operat!o# of
$&stoers a#" prov!"!#) e"&$ate a#" releva#t !#forat!o# for a"va#$e" pla##!#)(
operat!o# a#" $o#trol of lo)!st!$s a$t!v!t!es .
The so&r$e of "ata for the e'ter#al !#forat!o# syste for $&stoers serv!$e are #o "o&0t
the $&stoers theselves( a#" !#forat!o# $a# 0e $olle$te" fro the thro&)h the sales
staff .
?!!= I#ter#al I#forat!o# syste

Ma"e &p of the elee#ts of the !#forat!o# flow w!th!# a# or)a#!2at!o# .It !s 0etwee# the
"eparte#t of p&r$has!#)( pro"&$t!o#( ar*et!#)( f!#a#$e( et$ o# several !porta#t !ss&es
.The !#ter#al !#forat!o# syste $overs( "ata pro$ess!#)( "ata a#alys!s( a#" $oplet!o#
of $o#trol reports are of var!o&s types + stat&s reports( e'ept!o# report a#" s&ary
reports o# the 0as!s of wh!$h "e$!s!o# ay 0e a"e 0y respe$t!ve a#a)ers !# the
or)a#!2at!o#.
A"va#ta)es
?!= Lower !#ve#tory $ar!#) $osts( ore eff!$!e#t
reple#!she#t( ore a$$&rate fore$ast( ore o# t!e
"el!very( fewer "o$&e#tat!o# errors( avo!"!#) the
p&r$hase of &##e$essary e%&!pe#t( et$ .
?!!= Its a0!l!ty to 0etter pla# a#" $o#trol traff!$ a#a)ee#t
.
4!sa"va#ta)es
I#fle'!0!l!ty to $ha#)e( "!ff!$&lty of !#te)rat!#) ol" a#" #ew systes( h!)her $ost(
est!at!o# of syste $apa0!l!ty et$.
E'pe$tat!o# of the $opa#y fro LIS !s to h!)h C soe $opa#y th!#)s that &s!#)
lo)!st!$s !#forat!o# syste w!ll solve all the lo)!st!$s pro0les they have fa$e" .
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