Definition of Logistics Information System:
Logistics Information System can be defined as “The involvement of people, equipment and procedures required to gather, sort, analyze, evaluate and then distribute needed information to the appropriate decision maker in a timely and accurate manner so they can make quality logistics decisions.
Importance/Need for Logistics information flow:
Timely information flow is extremely important in an efficient logistical system. This is because of the following three important reasons.
- Today customers themselves evaluate the type and extent of customer service offered by the firm. The customers are very conscious, whether the firm is responding correctly to the information regarding order status, availability of required product, delivery schedule, correct invoicing, etc.
- Logistics managers have realized that correct and in time information flow can actually help to reduce both, the inventory levels as well as manual operations.
- If correct information is available, it can be used for many strategic advantages. E.g. : The firm can effectively counter the strategies of its competitors, or the firm can evolve strategies for future growth on a realistic basis.
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