•Information flow is a key element of logistics information.
• The common forms of logistics information are:
-Customer and replenishment orders
-Inventory requirements
-Warehouse work orders
– Transportation documentation
-Invoices.
•Traditional paper-based information flow results in slow, unreliable, and error-prone information transfer thereby increasing operating cost and decreasing customer satisfaction.
•As technology costs are declining and usage is easier, logistics managers are managing information electronically at reduced logistics expenses with increased coordination resulting in enhanced services by offering better information to customers.
•The specific technologies include electronic data interchange (EDI), personal computers, artificial intelligence, wireless communications,bar coding and scanning.
•For effective logistics information, timely and accurate information flow is critical because of the following three reasons.
(1) Customers perceive that information about order status, product availability, delivery schedule and invoices is necessary element of total customer service.
(2) Information can reduce inventory by minimizing demand uncertainty.
(3) Information facilitates allocation of resources for achieving strategic advantage.
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