Write a note on Logistics Information System

LIS – Logistics Information System:

LIS gathers information from all possible sources to assist the logistics manager in making decisions. It also interfaces with marketing, financial and manufacturing information systems. Ail of this information is then provided to top management to help formulate strategic decisions.

There are four primary components of LIS, viz., the order processing system, research and intelligence system, decision support system and reports and outputs system. These 4 subsystems together should provide the logistics manger with timely and accurate information on which to base decisions. These subsystems are interfaced with logistics managerial functions and the integrated logistics management environment. The 4 primary elements/ components are discussed below:

1. The order processing system is the most important subsystem of LIS because of its direct impact on the customers.
2. Research and intelligence system does scanning and monitoring of the internal as well as external environment of the firm on a continuous basis.
3. Decision support system is a computer based system which provides solutions to complex integrated logistics problems. The decision support system consists of a comprehensive database containing useful information for logistics manager to take decisions. Such a database may consist of:

a)      A basic file of internal and external data for analytical modeling.

b)      A critical factor data file which defines the scope of decision making.

c)      Policy and parameter data files which define integrated logistics operating policies for each functional area.

d)      A Solution file of past analysis results which are continuously compared against future analysis.

Report and output system: normal reports are used for planning operating and controlling integrated logistics. Planning outputs include sales trends, economic forecasts and other information pertaining to market place. Operating reports are useful for inventory control, transportation scheduling and routing, purchasing and production scheduling. Control reports are used to analyze expenses, budgets and performance