Principles of Logistics Information

Six principles to be incorporated to ensure that management information needs are adequately met:

• Accuracy – The degree to which the Logistics Information System reports should match with the actual physical counts. The logistics information must accurately reflect both the current status as well as the periodic activity for measures such as customer orders as well as levels of inventory.
• Availability – Logistics information must be readily available when required. Enterprises usually have substantial data relating to logistics activities, but these are often paper based or very difficult for retrieval from computer systems. It is necessary that these are available speedily to improve customer response and decision making.
• Timeliness – Refers to the time lapse between when an activity occurs and when the activity becomes visible in the information system. It is essential that timely information be provided for quicker management feedback. Corrective action can be taken and loss can be minimized with timely management controls. Thus, timely information reduces uncertainty and identifies problems, reduces inventory requirements and increases decision accuracy.
• Exception-based Logistics Information System – LIS needs to be exception-based in order to highlight problems and opportunities. The information system must identify exception situations, which require attention of management and decision-making. Managers can then focus on situations, which require maximum attention and offer opportunity to improve service or reduce cost. LIS need to be state of the art, highly exception-oriented and must utilize the system for identifying decisions requiring management attention.
• Appropriate Format – Logistics reports and screens need to contain the right information in the proper structure and must follow a logical sequence.
• Flexibility – LIS must be flexible to meet the requirements of both system users and customers. Tailored data to meet specific customer requirements must be made available by information systems. Within the organization, information systems must be capable of upgrading to meet future requirements of the enterprise without incurring huge costs or time.