Logistics

The things that must be done to plan and organize a complicated activity or event that involves many
people

Heart of the Logistics System

Information is the engine that drives the logistics cycle; without information, the logistics system would
not run smoothly.

Logistics Management Information System

 Collects, organizes, and reports data that enables people to make logistics system decisions.
 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.

Importance of LMIS
 Links the different levels in the system through information
 Provides information each needs to perform their supply chain role

Types of Logistics Records

1. Stock-keeping records. Holds information about products in storage.
2. Transaction records. Holds information about products being moved.
3. Consumption records. Holds information about products being consumed or used.

Stock-keeping records
These are used to record information about items in storage. At a minimum, stock-keeping
records must contain the quantity of stock on hand and the quantity of losses and adjustments.
Transaction Records
These are used to record information about the movement of stock from one storage facility to
another. Transaction records do not need to include any essential data items.
Consumption records
These are used to record the quantity of each item dispensed to clients or used at a facility.

Reporting Systems and Summary Reports

Stockkeeping, transaction, and consumption records record data. To make the collected data useful, the
records must be available to managers in a form useful for decisionmaking.

Six “RIGHTS” for LMIS data

If customers expect to find the right goods, in the right quantity, at the right place, at the right time, in
the right condition, and for the right cost, is it reasonable for logistics managers to expect the same to be
true for the information they need? We think the answer is definitely yes!

The Six “RIGHTS” also apply to Data.

We need the right data (the essential data items), at the right time (in time to take action), at the right
place (the place where the decisions are made), and in the right quantity (having all essential data from
all facilities). The data must be of the right quality (we have to believe that the data are complete and
accurate) and at the right cost (we should not spend more to collect information than we spend on
supplies).
Reporting Systems
Reports move information up and down through a logistics system and provide decisionmakers at various
levels the right information, at the right time, in the right place, in the right quantity, of the right quality,
and the right cost. A reporting system must be in place to ensure that this information flows correctly and
consistently. (a) Summary Reports, and (b) Feedback Reports

Summary Reports
Summary reports must contain all essential data items—stock on hand, consumption, and losses and
adjustments. It is used to move all essential logistics data items for products, for a specific facility, and for
a specific time period (such as monthly, bimonthly, or quarterly) to the decisionmakers.

Feedback Reports
Feedback reports inform lower levels about their performance and, sometimes, provide additional
information about reporting from other facilities. Feedback reports also inform higher-level managers
about how well the system is functioning.

As we mentioned, program and logistics managers collect data to make decisions. When they receive data
they know are incorrect, they need to communicate with the facility that sent the data. Managers can also
use data they receive to congratulate facilities for moving toward program goals. To do this, managers
can use feedback reports

Using an LMIS for Decision-making

At the most fundamental level, the decision-making process can be viewed as information flows and out
of which decisions emerge.

To improve decisions, you could (1) improve the information flowing, or (2) improve the process. These
are two different types of activities; in most cases, to have any effect on decisions, the two must be done
simultaneously.

This is the most important principle of LMIS development: to design a relevant, useful system, you must
first consider what decisions are being made and, second, how they are being made. Only with this
understanding can you say what information is needed and how to collect it. Information systems fail
most frequently because the information they collect is not useful in decision-making.