Logistics Information
Systems
LGSC 6004
Logistics Information Systems
An interacting structure of PEOPLE, EQUIPMENT and PROCEDURES
which together make relevant information available to the logistics
manager for the purpose of PLANNING, IMPLEMENTING and CONTROL.
• Information flow makes a logistics system DYNAMIC.
• QUALITY and TIMELINESS OF INFORMATION are key factors in logistics
operations.
Logistics Information Systems Structure
Logistics Information Systems Structure
Components of LIS:
• Input
• Database
• Output
LIS Structure - Input
A collection of data sources and data-transfer methods and means for
making appropriate data available to the computing portion of the
system.
There’s no arguing the power of big data in today’s corporate
landscape. Businesses are analyzing a seemingly endless array of data
sources in order to glean insights into just about every activity –both
inside their business, as well as those that are customer-facing.
Right now, it seems that enterprises cannot get their hands on enough
big data for analysis purposes – the opportunities and advantages to be
had here are tempting, as well as actionable, and can really make all
the difference for today’s companies.
LIS Structure - Input
There are several data sources where businesses can gather and collect data,
both inside and outside of their own organizations. Currently, there are a
more than a few DATA BROKERS that will sell lists of information – and while
these may seem helpful, it’s up to the enterprise to analyze and make the
best use of this data.
The LIS data can be obtained from many sources and in many forms,
however when it comes to determining the sources of data for a company’s
LIS the following three (3) Data dichotomies should be considered;
• Internal Vs External
• Structured Vs Unstructured
• Historical Vs Real-time
LIS Structure - Input
Internal Data
Internal sources of data reflect those data that are under the control of the
business. This data is the information that the business already has on hand,
has control of and currently owns, including details contained within the
company’s own computer systems and cloud environments.
External Data
External data, on the other hand, are any data generated outside the wall of
the business. This includes data or information that is not currently owned
by the company, and can include unstructured, public data as well as
information gathered by other organizations.
LIS Structure - Input
Internal Data Sources:
Before company’s explore external data sources, it’s CRTITICAL to
ensure that all of their internal data sources are mined, analyzed and
leveraged. While external data can offer a range of benefits, internal
data sources are typically easier to collect and can be more relevant for
the company’s own purposes and insights.
LIS Structure - Input
Internal Data Sources:
• Customer Data
• Transactional data and POS information
• Customer relationship management system
• Company Records
• Internal documents
• Archives
• Management Data
• Other business applications
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Sales Information System
Purchasing Information System
Inventory Controlling
Retailing Information System
Production Planning and Control Information System
Quality MIS
Plant Maintenance Information System
Project Information Systems
• Device sensors
LIS Structure - Input
External Data
Companies are increasingly operating as part of Supply Chain networks
consisting of business partners such as suppliers, resellers, channel partners,
regulators, and other stakeholders. These networks are often globally
distributed and potentially affected by economic, political, and/or
environmental factors.
Analyzing external data can help companies see risks and opportunities that
they would miss with inputs limited to data generated from internal
operations, customers, and first-tier suppliers. Analyzing external data can
illuminate how factors such as shifting consumer behaviors, competitor
initiatives, or geopolitical events can affect a business.
LIS Structure - Input
External Data
Whether the organization is seeking to answer broader questions
about the industry, or better understand potential customers, these
initiatives may require the data sourced outside the company’s own
data sources.
When this takes place, it’s critical that the enterprise understands the
most valuable places to gather data that will best benefit its current
processes. Today, we’ll take a look at the top sources of external data,
including public information that isn’t owned by the company.
LIS Structure - Input
External Data Sources
• Social media: Connecting with your customers
• Public government data
• Google: The data king
LIS Structure - Input
Structured Data
Structured data is considered more traditionally as BI, because it’s
quantifiable. It’s easier to put in a database, search, and analyze.
Unstructured Data
Unstructured data is considered a newer type of data. It’s not predefined and is typically text-heavy information, such as that from social
networks or customer comments.
LIS Structure - Input
LIS Structure - Input
LIS Structure - Input
Historical Vs Real Time
• Do you look at the present at the expense of the past, or do you spend so
much time on last month’s numbers that you don’t see the data for today?
• Companies often spend significant time using historical data to identify and
predict trends. But without real-time data to compare it to, the value of
that historical data is limited.
• The answer? Do a mixture of both. Real-time data can help you make a
pivot when a problem or opportunity comes up. But if you react to every
blip on the radar, your business will never have long-term success. You
need to balance both kinds of data to make intelligent decisions.
LIS Structure - Database
A database is an organized collection of structured information, or data,
typically stored electronically in a computer system. A database is usually
controlled by a DBMS. Together, the data and the DBMS, along with the
applications that are associated with them, are referred to as a database
system, often shortened to just database.
Data within the most common types of databases in operation today is
typically modeled in rows and columns in a series of tables to make
processing and data querying efficient. The data can then be easily accessed,
managed, modified, updated, controlled, and organized. Most databases use
structured query language (SQL) for writing and querying data.
LIS Structure - Database
The most important component of an information system is the converting
module in which data are converted to information and information is
converted to useful knowledge for decision making. Database management
contains three main functions: data selection, analysis method selection, and
basic data-processing procedure to implement. The maintenance of data in a
database depends on the answers to these four questions:
1. How critical is the information to the decisions the logistician must make
in a particular firm?
2. How rapidly does the information need to be retrieved?
3. How frequently is the information to be accessed?
4. How much effort is required to manipulate the information into the form
needed?
LIS Structure - Database
ABC approach to information-storage requirements is a good basis for deciding what types of storage capacity
are needed and how much:
• Data Retrieval
• Data Processing
• Data Analysis
Data retrieval refers to the capacity of recalling data from a database in essentially its raw form or in only
slightly modified form.
Data processing is one of the most popular features of the information system. Data-processing activities are
relatively simple and straightforward conversions of data in files to more useful forms such as preparing
transport bills of lading. Processing data into information is a very basic function of the information system.
Data processing usually contains simple operations on data such as sorting and summarizing, coding, and
arithmetic manipulations that convert data to useful information for logistics decision making and reporting.
Data analysis is the most sophisticated and newest use made of the information system. The system may
contain any number of mathematical and statistical models. Such models provide information that is useful in
dealing with some of the most difficult planning and control problems. These models use the database or the
output of data-processing steps to find trends and forecast future level of activities and other information that
is useful for planning.
LIS Structure - Database
Types of Databases
LIS Structure - Database
Types of Databases
• OLTP Database
• OLAP Database
• NoSQL Database
LIS Structure - Database
Types of Databases
• Flat File Databases
• Hierarchical Databases
LIS Structure - Database
Flat File Databases
Very simplistic in design, usually represented as a two-dimensional grid
of data, not unlike an Excel spreadsheet.
Other file formats include CSV ( Comma-separated values), TDF (Tab
delimited file), etc.
LIS Structure - Database
Hierarchical Databases
This database’s structure is similar to that of a tree, with “Parent” items
that can each have one or more “child” items. Much like the file system
on your computer.
LIS Structure - Database
Relational Data Base
LIS Structure - Output
The output of an information system is the interface with the user of
system.
The outputs in LIS cab are grouped in three types:
• Reports
• Prepared documents
• Results of data analysis