Logistics Information System

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By: Isaac Owusu

Introduction
❖ In the modern era of global commerce, logistics plays a pivotal
role in ensuring the seamless flow of goods, services, and
information from suppliers to consumers.

❖ At the heart of efficient logistics management lies the Logistics

Information System (LIS), a sophisticated framework that
integrates technology, processes, and data to optimize supply
chain operations.

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Introduction (Cont.)
❖ A Logistics Information System serves as the backbone of
supply chain management, enabling organizations to plan,
implement, and control the movement and storage of goods
efficiently.

❖ By leveraging real-time data and analytics, an LIS enhances

decision-making, reduces operational costs, and improves
customer satisfaction.

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Definition and Scope of LIS
Supply Chain Integration
Connects suppliers, manufacturers, distributors, and retailers in a
seamless network.

Data Management
Tracks inventory levels, shipment statuses, and demand forecasts
across the supply chain.

Process Automation
Streamlines order processing, warehousing, and transportation
operations.

Analytics
Provides insights for optimizing routes, inventory levels, and resource
allocation.

❑ LIS is a structured combination of software, hardware, procedures, and personnel

designed to collect, process, store and disseminate logistics-related data.

❑ It serves as the critical infrastructure that enables organizations to manage

complex supply chains in today's global marketplace.
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 Key Components of a Logistics Information System

Hardware Infrastructure
Software Modules
• Servers and Cloud
• Inventory Management
Platforms
• Transportation
Communication Networks
• Mobile Devices
Management • EDI Systems
• IoT-enabled Equipment
• Warehouse Management • APIs
Data Collection Tools • Order Management • Cloud Computing

• Barcode Scanners Human Resources

• RFID Technology • Trained Personnel
• IoT Sensors • IT Specialists
• GPS Tracking • Logistics Managers

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By: Isaac Owusu

Core Functions of an LIS
Real-Time Data Collection and Tracking
Track shipments across global networks using GPS and RFID,
maintaining records of product origins for recalls or
compliance.

Inventory Optimization
Minimize holding costs with Just-in-Time inventory
management and prioritize high-value items through ABC
Analysis.

Transportation Management
Reduce fuel consumption and delivery times using route
optimization while evaluating carrier performance.

Order Fulfillment
Reduce errors with automated order processing and eliminate
storage time through cross-docking techniques.

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More Core LIS Functions
Warehouse Efficiency
Determine optimal storage locations for items through slotting optimization
and allocate workforce based on real-time demand patterns.

Demand Forecasting
Use machine learning algorithms to anticipate market trends and plan for
seasonal peaks like holidays or sales events.

Customer Service Enhancement

Update customers on shipment status via SMS or email and streamline
reverse logistics for returns management.

Compliance and Reporting

Ensure adherence to trade laws and automate generation of shipping
manifests and customs documentation.
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Benefits of Implementing an LIS

Sustainability
Reduced carbon footprint

Risk Mitigation
Proactive disruption identification

Visibility & Collaboration

End-to-end supply chain transparency

Customer Satisfaction
Faster delivery and transparency

Cost Reduction
Lower fuel and inventory costs

❑ Organizations that adopt robust Logistics Information Systems gain significant competitive advantages through operational
efficiency, with reduced lead times and minimized bottlenecks.

By:
❑ The automation of repetitive tasks frees up human resources for more strategic roles while enhancing overall supply Isaac
chain
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Owusu
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performance.
By: Isaac Owusu
Industry Applications of LIS

Retail Manufacturing Healthcare

Manage omnichannel inventories and Coordinate raw material procurement and Ensure timely delivery of temperature-
coordinate last-mile delivery to meet finished goods distribution to maintain sensitive pharmaceuticals and medical
customer expectations in both physical and production efficiency and meet delivery supplies to hospitals and pharmacies with
online retail environments. schedules. strict compliance requirements.

E-commerce companies handle high-volume order processing during peak seasons, while Third-Party Logistics (3PL) providers offer end-
to-end logistics services to clients across multiple industries. Amazon's LIS integrates AI-driven demand forecasting, robotic warehouses,
and advanced delivery systems, enabling it to deliver over 10 million products globally within 24 hours. 15

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By: Isaac Owusu

Challenges in LIS Implementation

Integration Complexity
Legacy systems may not align with new technologies

Data Security
Vulnerabilities in IoT devices and cloud platforms

High Initial Costs

Investment in hardware, software, and training

Resistance to Change
Workforce reluctance to adopt new tools

Data Accuracy
Errors in input data leading to flawed outputs

❖ Despite its numerous benefits, deploying a Logistics Information System presents significant challenges that organizations must
overcome.

❖ The complexity of integrating new systems with existing infrastructure can create technical hurdles, while concerns about data security
become increasingly important as more logistics operations move to connected platforms.
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By: Isaac Owusu

Future Trends in Logistics Information Systems

AI and Machine Blockchain 5G Networks Autonomous Vehicles

Learning
Immutable records for Ultra-fast data transfer for Self-driving trucks and
Predictive maintenance, supply chain transparency real-time tracking will enable drones for last-mile delivery
dynamic pricing, and and anti-counterfeiting unprecedented visibility and will transform transportation
autonomous decision- measures will build trust and responsiveness in logistics logistics and address labor
making will revolutionize verification capabilities operations. shortages.
how logistics systems throughout the logistics
operate, enabling more network.
proactive management.

Additional emerging technologies include sustainability tools like carbon footprint calculators and circular logistics models, as
well as digital twins that create virtual replicas of supply chains for simulation and optimization before implementation in the
real world.
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By: Isaac Owusu

Conclusion: The Future of Logistics
24/7 60% 40%
Real-Time Operations Efficiency Gains Cost Reduction
Continuous visibility and control Typical improvement with advanced LIS Potential savings in logistics operations

❑ A Logistics Information System is no longer a luxury but a necessity in today's fast-paced, customer-centric market. By
bridging gaps between data silos, enhancing visibility, and driving automation, LIS empowers organizations to achieve
operational excellence and sustainability.

❑ As technologies like AI, IoT, and blockchain mature, the future of logistics will hinge on agile, intelligent systems capable of
adapting to ever-evolving global demands. Businesses that invest in advanced LIS solutions will not only survive but thrive in 15

the competitive landscape of tomorrow.

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By: Isaac Owusu