Logistics Information Needs

Logistics is an information-based process of material movement wherein the flow of information is a key to the success of logistic operations. The starting point of the information in logistics is the customer order. The customer spells out his needs and passes it on to the supplier in the form of a document either paper or electronic. Depending on the needs in terms of product quantity, prod­uct variety, place of use and urgency the logistical operation chain is activated at the supplier’s end to fulfill the customer’s requirement at the right place, at the right time and with least cost. Thus planning the material flow in the supply chain of the enterprise is essentially dependent on the information flow across the system. Information flow starts with the customers and ends with suppliers via distribution, manufacturing and procurement centers. At each of the above places, decisions are taken based on the information fed. The degree of success of the decisions largely depends on the information quality and timeliness. With the advancement in information and communication technologies, the speed of information analysis and flow has increased tremen­dously. As a result, efficiency and effectiveness of logistics operations have improved considerably, which in turn has led to increasing the level of customer satisfaction. The electronic movement of information helps reduce the cost of logistics operations due to increased coordination between various activities across the supply chain. Moreover, decisions are taken on real-time basis, mini­mizing the risk element.

Logistics information is required for operation planning and control, system development, and also for the strategic decision-making process. Operational planning covers customer order reg­istration, order processing, procurement actions, storage, order picking, packing and transporta­tion. Inventory management provides coordination between the logistics operations, procurement and manufacturing.

Logistical capacity and capability planning and network design require allocations and com­mitment of resources. These fall under the purview of strategic planning wherein the information needs are quite different from those required for operational planning. There is a high degree of risk element in strategic planning exercise, which can be minimized through designing a proper logistics information system using latest technologies, ensuring speed and reliability in information availability, processing and movement.

Source: Sople V.V (2013), Logistics Management, Pearson Education India; Third edition.

One thought on “Logistics Information Needs

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