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Logistics Information Systems

Logistics Information Systems:

Introduction

Many firms view effective management of logistics and supply chain activities as: Prerequisites to overall cost efficiency, and Keys to ensuring their ability to competitively price their products and services.1 Effective information management also can help ensure that a firm meets the logistics needs of its customers.
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Contemporary Issues in Information Systems

Results from Annual Computer Sciences Corporation Study on Information Systems Management suggest that highest priorities are on customers, productivity, and performance. It is clear that Internet and E-commerce issues are both recognizable and critical. Top technology issues are reviewed in Tables 12-1 and 12-2.
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Figure 12-1

Information System Building Process

Figure 12-2

Logistics Information Flow

Figure 12-3

Examples of Information Flows

Contemporary Logistics Information Technologies

Bar coding Most commonly used automatic identification technology Consistency of this technology important factor in efficiency and effectiveness. Electronic Data Interchange (EDI) B2B, computer-to-computer exchange of business data in a structured, machineprocessable format. (Figure 12-8)
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Figure 12-8

EDI versus Traditional Methods

Logistics Information Systems

Definition An interacting structure of people, equipment, and procedures that together make relevant information available to the logistics manager for the purposes of planning, implementation, and control.23 Examine Figure 12-9 on the next slide.

Figure 12-9

Logistics Information Systems

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Management of Business Logistics, 7th Ed.

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Logistics Information Systems:

Planning System

Illustrated in Figure 12-10 Provides decision support for logistics managers Logistics functional databases --- Table 12- 4 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.

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Logistics Information Systems

Types of modeling approaches --- Table 12-5 Optimization

Searches for best solution Replicates the logistics network Used for broader, non-optimum solutions

Simulation

Heuristic

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Management of Business Logistics, 7th Ed.

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Logistics Information Systems:

Execution System

Examine Figure 12-11 Responsible for short-term, day-to-day functioning of the logistics system. Include technologies that help manage warehousing, transportation, international trade, and inventory. Many recent advances in technology and these advances will most likely continue to evolve and impact logistics management in the future.
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Figure 12-11 Direct Materials

Purchasing Moves Online

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Logistics Information Systems:

Research and Intelligence System


Environmental scanning Undirected viewing General exposure to information Conditioned viewing Directed exposure to information Informal search Limited and unstructured effort to find information Formal search Deliberate effort to find information relating to a specific issue
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Logistics Information Systems:

Knowledge Management

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 It is increasingly popular to dedicate a web site to hold information from the scan.
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Logistics Information Systems:

Reports and Outputs System

Many logistics managers do not believe that reports communicate effectively. Communication occurs only if the message keys into the receivers values and responds directly to the needs of the recipient. Types of reports Planning reports Operating reports Control reports
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