Report on

Logistic Management Information System

What is Logistic Information System?
A logistics management information system (LMIS) is a system of records and
reports – whether paper-based or electronic – used to aggregate, analyze,
validate and display data (from all levels of the logistics system) that can be used
to make logistics decisions and manage the supply chain.

LMIS data elements include stock on hand, losses and adjustments, consumption,
demand, issues, shipment status, and information about the cost of commodities
managed in the system.

Why we need MIS in Logistics?

Poor recordkeeping: Conventional System consists of incomplete or not updated
stock and consumption records. This results in lots of hassle and a space for
errors.

Poor reporting: Report generation is always late, incomplete and poor quality
and difficult to understand. As a slack of certain employees could result in errors
that can cost a fortune.

Hierarchy Problem: Data not moving up or down the system creates problem for
work staff. Facilities not submitting to districts, districts not sending reports to
central, central not providing feedback to districts and facilities.

Forecasting: As data is not error free it’s difficult to make future decision and
advancements.
Types of Flows in Logistics:

Physical Product Flow

Physical Product flow includes a smooth flow of an item from the producer to the
consumer. This is possible through various warehouses among distributors,
dealers and retailers. The main challenge we face is in ensuring that the material
flows as inventory quickly without any stoppage through different points in the
chain. The quicker it moves, the better it is for the enterprise, as it minimizes the
cash cycle.

The item can also flow from the consumer to the producer for any kind of
repairs, or exchange for an end of life material. Finally, completed goods flow
from customers to their consumers through different agencies. A process known
as 3PL is in place in this scenario. There is also an internal flow within the
customer company.
Information Flow
Information/data flow comprises the request for quotation, purchase order,
monthly schedules, engineering change requests, quality complaints and reports
on supplier performance from customer side to the supplier.
From the producer’s side to the consumer’s side, the information flow consists of
the presentation of the company, offer, confirmation of purchase order, reports
on action taken on deviation, dispatch details, report on inventory, invoices, etc.
For a successful supply chain, regular interaction is necessary between the
producer and the consumer. In many instances, we can see that other partners
like distributors, dealers, retailers, logistic service providers participate in the
information network.
Role of Information Systems in Logistics:

In logistics information system, information can be as lifeblood of a logistics and

distribution system. The effectiveness and accuracy of distribution systems
depend on the transfer of information. Logistics information system holds the
whole system and coordinates all the components of logistics operations:
planning and coordination and operation. Planning and coordination defines
nature and location of customers that supply chain operations seek top match to
planned product and services and promotions.

The purpose of operation is to exchange information between supply chains

members involved in product distribution. The activities of operation are order
management, procurement, where order management is accurate entry and
qualification of customer orders and procurement is concerned within the
information necessary to complete purchase order preparation, modification and
release while ensuring overall supplier compliance.
There are some components of logistics information system:
  Input  : It is a collection of data sources and data transfer methods for making
appropriate data available to the computing portion of the system.

Company records: information can be obtained directly from a company’s

internal records, accounting reports, status reports, internal and external reports.

Company data:  Company data are often an untapped source of excellent data.
However, such data are located at a single point within the company nor are
organized in any meaningful way for logistics decisions making.

  Published data:  Professional journals, trade magazine and government reports

are some sources of this type of data. This type of data is more generalized than
internally generated data.

  Database  Management  : Information system is the converting moduling in

which data are converted to information and information is converted to useful
knowledge for decision making. Database management contains data selection,
analysis method selection and basic data processing procedure to implement.

  Data retrieval: It refers to the capacity of recalling data from a database in

essentially its raw from orin only slightly modified form.

  Data  processing: It is one of the most important features of the information

system, the activities of data processing are word conversion of data in files to
more useful forms such as preparing transport bills of lading.
The Logistic Information System in made up of following information
systems:

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 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:

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.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

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).
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.
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.
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 and Forecasting:
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.

Logistics 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
• https://www.researchgate.net/publication/220672583_Logistics_informati
on_systems_An_analysis_of_software_solutions_for_supply_chain_co-
ordination
• Logistics information system, Togar Simatupang
• https://www.slideshare.net/m7ammmedx/113379179-
logisticsinformationsystem