Logistics Information System: Structure, Evolution, and Technologies

Introduction

The logistics information system plays a critical role in enabling businesses to gain a competitive advantage and enhance their efficiency in today’s competitive landscape. This system is designed to streamline supply chain processes and manage logistics operations. Here are the fundamental building blocks and technological evolution of the logistics information system:

System Modules

The logistics information system must facilitate communication within the internal departments of the company (such as production, finance, logistics, etc.) and interact with customers and other stakeholders in the supply chain. Key modules in this system include:

1. Order Management System

The order management system is a critical component that directly communicates with customers, handling the receipt and processing of orders. Automated order processing provides advantages to the company by ensuring speed and accurate information flow.

2. Warehouse Management System

The order management system and warehouse management system are interconnected. The warehouse management system controls product flow, manages stock levels, enables demand-based production, and optimizes processes within the warehouse.

3. Transportation Management System

The transportation management system focuses on both internal and external transportation processes. Integrated with other systems, it plans and controls business transportation operations by sharing order information.

Four Levels of Logistics Information System and Technologies

Logistics information systems and technologies can be examined at four main levels:

1. Transaction-Based Support (TBS)

Used as an effective tool to support logistics operations. This level includes warehouse management systems and transportation management systems.

2. Integrated Organizational Support (IOS)

Intranet systems facilitate data and information communication among different units within the organization. Big data, information standardization, and integrated decision support systems become crucial at this level.

3. Information Sharing and Exchange (ISE)

Extranet systems enable information exchange and sharing between businesses. Electronic Data Interchange (EDI) takes precedence, establishing effective communication channels among supply chain partners.

4. Internet-Based Supply Chain Management Systems

The widespread use of the internet has led to the development of web-based supply chain management systems. The internet facilitates the rapid transmission of data such as market demands, inventory statuses, and shipping information.

These four levels reflect the evolution of logistics information systems and the progress of businesses in information management.

Automatic Data Collection Technologies: Barcode and RFID

Logistics information systems are further empowered by automatic data collection technologies. Barcode and Radio-Frequency Identification (RFID) technologies enable the recognition of physical objects and direct transfer of data into systems.

Barcode Technologies

One of the most common automatic data collection technologies is barcoding. Barcodes are utilized in various industries, including manufacturing, food, retail, healthcare, transportation, and logistics. Key barcode types include UPC-A, EAN, Code 39, and Code 128.

RFID Technologies

RFID is a technology that uniquely identifies objects. It offers faster and remote reading compared to barcodes. It is effective in tracking products, managing inventory, and optimizing supply chain processes.

Conclusion

Logistics information systems and automatic data collection technologies are essential tools for businesses to gain a competitive advantage and enhance efficiency. With technology continuously evolving, the evolution of logistics information systems will persist, contributing to the increased effectiveness of supply chain management. Therefore, businesses should closely monitor these technological advancements and continuously update their implementations.