In recent years, logistics has been identified as having the potential to become the next governing element of corporate strategy to create value for customers, generate cost savings, enforce discipline in marketing efforts and extend the flexibility of production and information technology helps to improve the logistics management.
LIS is defined as a management information system providing management with relevant and timely information related to logistics functions and logistics activities, Major improvements of information technology for international logistics there are 7 potential benefits of adopting LIS
Provide a quick response and access to information
The customers can efficiently access the information of shipping status for real time tracking.
It will reduce the workload by using information technology. (example: using FRID can easily to tracking the cargo location)
The standard enables businesses to efficiently and accurately exchange information among trading partners, to achieve effective product flows.
Reduce paper work
By using EDI system for data input, it will reduce the paper work.
Reduce data re-entry and errors
By using Auto ID captures data without re-typing, it will improve accuracy and organizational ability for item tracing
Improve data control and allowing for the immediate use of data By using Barcode scanner or RFID to reduce data re-entry and input error and also use the EDI system to control and sharing data will other department.
Help to make more informed decisions & Streamline logistics processes EDI can transmission of data between organizations by electronic. It help to customizable order system and configure to meet specific business needs. Information is valuable logistics resource. The importance of the flow of information in logistics channels has been recognized alongside that of material flow. The EDI system also provides Real-time visibility tracking and tracing around the world while its database can provide data analysis for business forecast.
Electronic Data interchange (EDI)
EDI system is using computer to exchange data between customers. Component that translates transaction documents electronically into a standardized format for electronic exchange, since many company are using computer for their daily operation.It helps companies exchange commercial documents such as involves, furthermore, the organizations might replace bills of lading and even cheques with appropriate EDI messages. Different large firms may use different EDI systems designed under own specifications, and there are vendors providing services to convert these different standards. Parknshop using EDI solutions for sending purchase order to suppliers, around 5000 purchase order are sending to suppliers daily for order processing When Parknshop create a PO, supplier would receive a EDI PO after 30 mins.
For example, UPS had Integrating a standardized data format like Electronic Data Interchange (EDI) to existing infrastructure and the customer can reduce business transaction costs, spend less time tracking down the files customer need, receive support for batch processing of package-level detail uploads, billing information, and package tracking. UPS EDI system is the direct application-to-application transmission of business documents such as: The System provides document like invoice, packing list, air way bill & manifest. Using Internet & cell phone to check the shipment status & progress by using the tacking number
UPS EDI infrastructure can help them assurance that tracking results, electronic funds transfers, and other key data are transferred throughout internet and this include domestic and export services are also supported. Also the EDI system help the environment by reducing overall paper consumption.