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Information Networks

Definition of LIS

LIS is an interacting structure of people, equipment and procedures that together make relevant information available to the logistics manager. LIS is a part of Management Information System.

Objectives of LIS

1. Obtaining correct and prompt information.

2. Maintaining and updating the information collected.

3. Communicating the information to all the concerned as and when required.

4. Taking proper decisions at all levels in the organisation.

5. Supporting planning function.

Importance of LIS

1. LIS is a key element to develop logistical competence.

2. LIS integrates various activities of logistics.

3. LIS is one of the three pipelines managed by logistical management.

4. LIS is important to customer service.

5. LIS underwent revolutionary change due to changes in technology.

Primary Activities of LIS

1. Receiving, analysing, processing and storing related information within organisation.

2. Communication of data to the decision makers.

3. Communication of information to the supplier, service providers and customers.

4. Receipt of feedback from external sources (supplier, service providers and customers)

Information Functionality

The organisation has different functional levels. Each level has different needs of information.

1. Operating level – It is the lowest level. Generally data gets generated here which is transferred to further level to take decision in the form of information.

2. Control level – Here the efforts are to be taken to improve efficiency of the operating level by analysing the information.

3. Decision level – Here the manager has to evaluate the information to see the operations and customer needs are equalised

4. Policy level – Manager has to decide the policy on the basis of factors warehouse, transportation system etc.

Electronic Data Interchange (EDI) 

EDI is the electronic, computer-to-computer transfer of standard business documents between organisations. EDI is extensively used in ILIS (Integrated Logistics Information System) to enhance the speed, timeliness and accuracy of the information. EDI has replaced the traditional transmission of documents such as mail, fax etc.

Benefits of EDI

1. Greater accuracy due to reduction in manual processing.

2. Faster speed in order processing.

3. Reduced clerical efforts in data entry, filing, mailing and related tasks.

4. Reduced inventory due to reduced order cycle time.

5. Increased productivity though faster information transmission.

6. Improved channel relationships by reducing number of individuals involved in data entry.

7. Decreased operating cost by reduction of labour and material cost associated with paper work and telephone fax expenses.

8. Increased ability to compete internationally