LOGISTICS INFORMATION

SYSTEM
INTRODUCTION
We can define it as : “An information system is a
system for collection, adaptation, storage, transfer
and presentation of information , for the users of
the information system, in an effective way. The
information system can be totally or party
computerized.” Logistics is “the process of
strategically managing.
IMPORTANCE OF THE LOGISTICS:
INFORMATION SYSTEM
Logistics information systems are important for achieving logistics efficiency and
effectiveness. In an enterprise, logistics information system seeks to achieve the following:
 It ensures of logistics functional operations into a process pursuing customer satisfaction

at the lowest total cost.

 Information system facilitates planning and control of the logistical activities related to

order fulfillment.
 It makes the firm more competitive, by making better tactical and strategic decision for

the benefits of the firm and its customer.

 Helps provide customers information regarding product availability, order status, and

delivery schedules promoting customers service.

 It reduces the requirements of inventory and human resources by enabling requirements

planning.
 It interfaces with marketing, financial, and manufacturing information systems and

provides information to top management to help formulate strategic decisions for the
whole firm.
 The use information technology in information systems has enabled quick response to

demand making forecasting redundant. This has also helped in implementing “pull”
systems like just-in-time making the firm more competitive.
 It promotes systems that link the operations of the firm, such as manufacturing and

distributing, with the suppliers operations on the one hand the customer on the other.
 FUNCTION OF THE INFORMATION SYSTEMS
An information system uses informative key figures to aid the rapid
detection of existing problem areas and analyze their origin.

The information systems in logistics are flexible tools for collecting,

aggregating and analyzing data from the operative applications They thus
enable you to continually control target criteria and to react in time to
exceptional situations.

The function of the information systems is to allow you to view the

information from your operative applications from any perspective you
wish. You are free to define the level of detail in which the information is
displayed.

In the Logistics Information System, data can be analyzed either as a

standard analysis or as a flexible analysis.
THE LOGISTICS INFORMATION SYSTEM (LIS) IS MADE
:UP OF THE FOLLOWING INFORMATION SYSTEMS

 Sales Information System

 Purchasing Information System
 Inventory Controlling
 Shop Floor Information System
 Plant Maintenance Information System
 Quality Management Information System
 Retail Information System (RIS)
 Transport Information System (TIS)
 LOGISTIC INFORMATION SYSTEM

PLANT MAINTENANCE
INVENTORY SALES INFORMATION
CONTROLLING
INFORMATION SYSTEM
SYSTEM

SHOP FLOOR QUALITY

PURCHISING
INFORMATION MANAGEMENT
INFORMATION SYSTEM
SYSTEM INFORMATION SYSTEM

PLANNING / FORECASTING

EARLY WARNING SYSTEM

LOGISTIC INFORMATION LIBRARY

RETAILING INFORMATION SYSTEM
Decision Support Systems (DSS):
An is designed to assist manager in non-routine semi-structured or
unstructured decisions. Combines use of models and data from various
sources. Allows user to conduct a ‘what-if’ analyses by changing the
assumptions underlying various components of the decision
Executive Support Systems:
Designed to support senior managers responsible for making strategic
decisions- non-routine and require information about trends in the
external environment as well as internally. Incorporates information
both from MIS and DSS and external data about economic,
competitive and regulatory environment etc
RETAILING INFORMATION SYSTEM
Can be divided into 4 basic types :
Transaction Processing Systems (TPS):
Used to facilitate customer transactions and other routine business processes (e.g.
EPOS systems, payroll and employee record keeping). Critical to operations. Forms
major input into other systems

Management Information Systems (MIS):

To assist middle managers in their monitoring, controlling and decision-making
activities. Provide routine summary or exception reports
(usually from transaction data from TPS indicating firms current performance)
either in the form of a report or online access. Usually involve pre-specified
questions, simple summaries and comparisons.
.
INVENTORY CONTROLLING
The overseeing and controlling of the ordering, storage and use
of components that a company will use in the production of the
items it will sell as well as the overseeing and controlling of
quantities of finished products for sale.
A business's inventory is one of its major assets and represents
an investment that is tied up until the item is sold or used in the
production of an item that is sold. It also costs money to store,
track and insure inventory. Inventories that are mismanaged can
create significant financial problems for a business, whether the
mismanagement results in an inventory glut or an inventory
shortage
PLANT MAINTENANCE INFORMATION SYSTEM

 The Plant Maintenance Information System

(PMIS) is a subset of the Logistics Information
System (LIS) . It allows some flexibility in the
updating of information as well as the ability to
report on data trends gathered over time .Rather
than providing list editing-type reports that allow
a view of specific work orders or pieces of
equipment
SALES INFORMATION SYSTEM

Is a set of procedures and methods designed to

generate, analyze, disseminate, and store anticipated
marketing decision information on a regular,
continuous basis. An information system can be
used operationally, managerially, and strategically
for several aspects of marketing.
A marketing information system can be used
operationally, managerially, and strategically for
several aspects of marketing.
SALES INFORMATION SYSTEM
The information needed by marketing managers comes from three main
sources:
1) Internal company information – E.g. sales, orders, customer profiles, stocks,
customer service reports .
2) Marketing intelligence – This can be information gathered from many sources,
including suppliers, customers, and distributors. Marketing intelligence is a catchall
term to include all the everyday information about developments in the market that
helps a business prepare and adjust its marketing plans. It is possible to buy
intelligence information from outside suppliers (e.g. IDC, ORG, MARG) who set up
data gathering systems to support commercial intelligence products that can be
profitably sold to all players in a market.
3) Market research – Management cannot always wait for information to arrive in bits
and pieces from internal sources. Also, sources of market intelligence cannot always be
relied upon to provide relevant or up-to-date information (particularly for smaller or
niche market segments). In such circumstances, businesses often need to undertake
specific studies to support their marketing strategy
SHOP FLOOR INFORMATION SYSTEM
In the standard system, the following standard analyses are available in the
Shop Floor Information System:
Work Center
You can use the work center standard analysis to evaluate data from the area of work
centers. The information structure S024 provides the data basis .
Operation
In the standard analysis ‘operation’ you can evaluate the data from the operation. The
data basis is provided by data updated to information structure S022.
Material
The material standard analysis allows you to evaluate the data for material. The data
basis is formed by data that is updated to information structure S023.
Production Order
In this analysis you can evaluate the data for production orders. The data basis is the
data updated to information structure S021
SHOP FLOOR INFORMATION SYSTEM
Material Usage
In the material usage analysis, you can analyze data from the production orders, run schedule headers and process orders.
You can use the material usage analysis to answer the following questions: What components were used for a material in
total? Which individual components were affected by the material usage? What was the original requirements quantity and
what was actually taken? The basis of this analysis is provided by data that is updated to information structure S026.
Run Schedule Header
The run schedule header analysis enables you to evaluate the key figures from the run schedule header. The data basis for
this analysis is provided by the information structure S025.
Product Costs
Data from production orders, run schedule headers and process orders can be evaluated in the product cost analysis. Both
planned and actual costs for production and process orders are updated to product costs. The planned costs are updated at
the exact time of release, the actual costs are updated at the point of completion confirmations and goods issues. The data
basis of this analysis is provided by data that is updated to information structure S027.
Reporting Point Statistics
The standard analysis ‘reporting point statistics’ is used to evaluate the data from repetitive planning. Here, the number of
units for so-called reporting points (comparable with events in the production order) are determined and updated. The data
basis of the analysis is provided by the confirmed quantities and the confirmed scrap for the reporting point, which are
updated in information structure S028.
PURCHASING INFORMATION SYSTEM
procedures, manual or computerized, followed by an
organization to achieve the following basic
objectives:
 1.To determine the quality and quantity needed and the

time when an item is needed

 2. To obtain the best possible price

 3. To maintain information on sources of supply. The

system should utilize such concepts as Economic Order

Quantity (EOQ) , optimal reorder point, quantity discount ,
and Material Requirement Planning (MRP)
TYPES OF PURCHASING SYSTEMS
The effectiveness of purchasing activities can be enhanced by proper
organization and coordination of the activities.
There are four types of purchasing system:-
Purchase made as per requirement: No purchase is made in advance.
Purchase is done as need arises. Method usually applied for emergency
requirement or infrequent goods.
Contract Purchasing: Contract of material is given to an agency. It has an
advantage that low price of those materials whose cost fluctuates highly.
Market Purchase: Purchase is made from the market to take advantage of
price fluctuations.
Schedule Purchasing: It is a cyclic purchase model. A schedule of purchase
is made and it is used for those commodities whose price do not fluctuate.
QUALITY MANAGEMENT INFORMATION SYSTEM
The Essentials of Information Quality Management :
1. Understand information quality is a business problem, not just a systems problem,
and solve it as a business process, not just as a systems process.
2. Focus on the information customers and suppliers, not just the data
3. Focus on all components of information, including definition, content and
presentation.
4. Measure data accuracy, not just validity.
5. Implement information quality management processes, not just information quality
software.
6. Measure costs – not just percent ­– of no quality information and business results of
quality information.
7. Emphasize process improvement and preventive maintenance (Plan-Do-Check-Act),
not just corrective maintenance (data cleansing).
8. Improve processes at the source, not just in downstream business areas.
9. Provide quality training to managers and information producers (who their
information customers are, quality requirements and how to meet them).
10. Actively transform the culture, don't just implement activities
TRANSPORT INFORMATION SYSTEM
In the transport information system, the following standard analyses are available
Transport
The transport analysis displays information from the transport header and delivery header. The key figures for the complete
transport (such as distance, delivery time, weight) are updated in relation to the transport MRP, transport type, service agent,
.starting point, and target point
Transport routes
Use this analysis to display information about transport routes. The key figures for the complete transport are updated in relation
.to the transport MRP, transport type, and service agent
Transport method
This analyzes the transport processes based on the main transport MRP. Key figures for dimensions and utilization of MRPs are
.displayed
Transport Send
The send analysis makes evaluation of data for deliveries of transport s possible from (transport MRP, delivery type, and sending
.point)
Transport Sections
This analysis allows for evaluations ate the transport leg level. The key figures for the transport sections (such as distance,
delivery time, weight) are updated in relation to the transport MRP, transport type, service agent, starting point, and target
.point
Transport Material
.This analysis gives you information for the transport of certain materials
PLANNING/FORECASTING

As well as allowing you to analyze actual data, the information

systems in Logistics allow you to
create planning data. This planning data can be used later on in
the standard analyses in
planned/actual comparisons.
The planning function in the information systems is based on
the standard information structures.
That is, it is possible to plan the information structures that are
available in the standard system,
as well as self-defined info structures.
EARLY WARNING SYSTEM
The Early Warning System is based on the key figures of the Logistics Information System (LIS) and can be
used for all of the applications in Logistics.
You can find the Early Warning System in all of the LIS information system menus.
The Early Warning System allows you to make decision-oriented selections and to check weak areas in
Logistics, by enabling you to search for exceptional situations. This means that you can detect and rectify
potential problems at an early stage.
You can define both Exceptions and the conditions for follow-up processing. An exception consists of specified
characteristics or characteristic values (for example customer, material), and requirements. The following
requirements can be defined:
Threshold Value
For example, materials/customers whose sales are greater than 10,000 DM)
Trend
For example, materials/customers with a negative trend in sales or lead times)
Planned/Actual Comparison
For example, which customers have a plan realization for incoming orders of less than 80%)
In the planned/actual comparison, you specify the plan realization in percent and specify an operator (>, <, =
etc.). This type of requirement helps you to check the plan realization and to pinpoint the weak areas between
planned and actual data.
LOGISTIC INFORMATION LIBRARY
You use the Logistics Information Library (LIL) to record, classify, and
retrieve key figures.
The main benefits of the LIL are the following:
 Central catalog of all key figures

 Transparency of information with regard to availability

 Faster, more direct access to key figures

 Easy-to-use search strategies

 No detailed system knowledge required

 Grouping of key figures to form customized info sets

 User-specific maintenance of control parameters

 Key figure authorizations tailored to each user's needs

 Avoidance of unnecessary system load due to predefined analysis areas

REFERENCES
• http://www.mbaknol.com

• http://www.allbusiness.com

• http://www.marketing91.com

• ENTERPRISE ASSET MANAGEMENT By; Ina McMullan

• http://www.investopedia.com/terms

• http://www.information-management.com
CONCLUSION