You must have heard about logistics information systems here and there and how they are important for achieving logistics efficiency and effectiveness. The ability to manage complexity is a key success factor for any logistics provider. Using information technology can simplify overall logistics processes and improve performance.
And as we mentioned, the complexity of logistics operations has risen along with the technological age, which is why logistics information systems have been developed to make logistics easier. synchronizing the supply chain’s various logistical phases.
In this article, we will help you learn more about logistics information systems and show you how you can benefit from them.
Logistics information systems definition
Logistics information systems (LIS) are several digital programs part of Management Information System (MIS), that helps managing, controlling and measuring logistics process, including storage, packing, and shipment. It seeks to lower logistics costs and increase the quality of logistics services.
There are multiple types of logistics information systems out there, Depending on which tasks, different types of logistics information systems can be used. Data is gathered and evaluated about each operation.
Most common Logistics information systems:
Transportation management system (TMS):
Transportation management system is a logistics system that uses technology to assist companies with the planning, carrying out, and optimization of the physical transportation of goods. It can significantly reduce complexity and boost productivity.
It automatically calculates and compares freight rates, manages delivery instructions, and generates daily reports. And execute and track shipments. Plus it Forecasts transportation demand, evaluating costs and profitability, to adapt to unforeseen conditions using real-time data of components of the logistics process.
Distributed order management (DOM):
Distributed order management is order management software designed to improve the order fulfillment process it aims to reduce fulfillment lead times with the lowest possible cost. It basically assist you in maximizing profits, minimizing costs, while meeting service-level goals.
DOM enables businesses to better manage their inventories and guarantee that all necessary elements are present. It assists with integrations and links to third-party logistics service providers, merging orders placed by the same client to combine shipment.
Warehouse management system (WMS):
The warehouse management system is a logistical software that is commonly used in the manufacturing and retail sectors. It reduces the chance of error caused by manual management
By operating tasks automatically like stock replenishment, order picking, and goods shipment planning. And keeping track of all the goods as they enter and exit the warehouse. And with automated actions, Warehouse management system enables businesses to cut labor costs, increase space efficiency, and lower inventory carrying costs.
WMS helps with the layout and the organizing of the goods in of the warehouses, it provides simple access to the product, optimal space utilization, improved workflow and maintain less floor traffic.
Some of the Logistics Information System Technology Applications:
A code is made up of black lines that are used to identify particular products and their pertinent data. That scanners connected to computers can read with a simply swipe, they are used to track warehouse stocks and enhance inventory management.
Radio Frequency Identification (RFID) Tags
They are tags that uses radio waves to identify goods using a device that can read data from a wireless device or “tag” without establishing physical contact or requiring a line of sight from a distance.
Digital labels for shipped goods so that they can be recognized in the supply chain and can be tracked. They are a vital connection in the entire supply chain, the data they contain is very important.
A machine-readable square in black and white is a QR code. It is packed with details about various goods. It is similar to bar codes except that it can include more information. And can be read by different digital devices like smartphones.
Why use logistics information systems?
Logistics information systems provide numerous benefits to every stage of the supply chain, including purchasing, production, warehousing, financial, and even accounting, making logistics management much easier.
the old way of entering data by hand is long gone when using logistics information systems programs. Instead, automation is taking over, eliminating any possible human error, and getting rid of the time-consuming production of essential paperwork in logistical inventory management and order fulfillment. Enabling quick responses and effect performance.
Smart information flows and data processing:
Logistics information software extracts information from operations easily in order to coordinate warehouse processes in the various levels of the supply chain in real-time to obtain output information.
Connecting the supply chain:
Logistics information systems link each step of the supply chain process by interacting with the marketing, financial, manufacturing, and transportation departments. By collecting data from each of these departments and later process it to help make strong logistics decisions that are advantageous to the entire company.
Improved logistics planning:
Information systems uses the data that has been collected and monitoring of a product across the supply chain to provide logistics managers with all the knowledge necessary to conduct an efficient logistics planning.
Choosing to use logistics information systems is an option of course, but with technology taking over the logistics field, the business has become more and more competitive, and soon every retailer, warehouse, carrier will be using these systems or even a more advanced ones. so to keep your current position you have to keep up with theses logistics technological trends. To help you more here are some other tech trends that will help you stay on top 5 logistics technology trends to keep an eye on.