Information Flow on Logístic
Edna Yissela Ariza, Luisa María García Chávez, José Miguel Niño Orduz
Universidad Piloto de Colombia, Seccional Alto Magdalena
NRC11700: Sistemas de Información Logísticos
Ing. German Ortiz Diaz
25 de febrero del 2023
INFORMATION FLOW ON LOGISTIC
AUTORES
EDNA YISSELA ARIZA, LUISA MARÍA GARCIA CHAVÉZ, JOSÉ MIGUEL
NIÑO ORDUZ
Presentado para optar el título de: Administrador logístico
DIRECTOR
ING. GERMAN ORTIZ DIAZ
UNIVERSIDAD PILOTO DE COLOMBIA
FACULTAD DE LA ADMINISTRACIÓN
CARRERA DE ADMINISTRACIÓN LOGISTICA
Girardot, Cundinamarca
25 de febrero del 2023
Table of Contents
Main Functions of Information...................................................................................4
What is an Information System...................................................................................4
Characteristics of the Information System..................................................................4
What is Information Flow...........................................................................................5
What does the flow of information have to do within the companies?.......................5
What information must be obtained for decision making?.........................................6
Logistic Information System.......................................................................................6
Logistic Information System Functions......................................................................6
Logistic Information System Information Solutions..................................................6
What is ERP................................................................................................................6
ERP Systems on Logistics..........................................................................................6
ERP Benefits...............................................................................................................6
Automatic Identification Technology.........................................................................7
Logistics activities in Suplain Change and the benefits of application.......................8
Conclusion..................................................................................................................9
Introduction
This document outlines the different concepts that a logistics manager should know
before entering the field of information flows, emphasizing the importance of the role of
information flow in logistics processes, as well as its characteristics, functions and the
integration of information technology, mentioning the concepts of flows, benefits,
revolutionary technologies and software.
Main Functions of Information
I think that to start with the exposition, I should explain that information is
important for the different logistic management to be applied daily, regardless of the work
environment to which it is applied.
Figure 1 Logistics
Source: bextox
What is an Information System
An information system is a set of agents, codes and processes that interact in
coordination with each other for a common purpose.
In computer science, information systems help to manage, collect, retrieve, process,
store and distribute information relevant to the fundamental processes and particularities of
each organization. The importance of an information system lies in the efficiency in the
correlation of a large amount of data entered through processes designed for each area with
the objective of producing valid information for subsequent decision making.
Figure 2 information system
Source: beetrack.com
Characteristics of the Information System
Adequacy of information that depends on the method that we apply every
day. (Integrity)
Figure 3 Package
Source: incibe.com
The credibility of the information that affects the information channels,
whether it is the input, which is any resource needed, and output, which is
the quantity of goods or services produced, thus generating different
decisions to present to the recipients.
Figure 4 To do list
Source: incibe.com
Uselessness and importance.
What is Information Flow
The flow of information or communication within an organization refers to the
movement of rules and communication within an organization. There can be several
directions that have space in them, such as downward, upward, horizontal, diagonal, and
external.
The information flows are the ones that make sure that the information that is given
is concrete and correct and can be shared among the workers.
Figure 5 Logistics
Source: researchgate.net
What does the flow of information have to do within the companies?
Individual planning of logistical processes such as product demand, product
planning, material requirements, building trust with procurers.
Coordination with the flow through the goods movement chain.
Monitoring and control of logistical processes, be it sales, procurement, and
inventory maintenance.
Controlled processes at the operational level, particularly with procurement,
transportation, and storage.
Figure 6 Information, money and material flows
Source: logistiikanmaailma.fi
What information must be obtained for decision making?
They require the acquisition of information obtained, collected, and processed in all
logistic system of the company, the logistic relations are related to other activities within
the scope of management, they require the acquisition of information obtained, collected,
and processed in all logistic system of information, the usefulness of such information is
determined by characteristics of timeliness, relevance, completeness, and reliability.
Figure 7 Material and Information Flow
Source: researchgate.net
Logistic Information System
They are digital programs that are implemented to facilitate decision making and
management of operations such as procurement, warehousing, order preparation or
transportation and shipment of goods.
Figure 8 LIS
Source: stechies.com
Logistic Information System Functions
Automates processes eliminates manual data entry operations. In turn, they
automate the generation of the necessary documentation for logistics
operations, eliminating the risk of errors in processes such as inventory
control or order preparation.
Automated information flow: extracts information from operations to
coordinate both warehouse processes and the different levels of the supply
chain with each other. The most advanced programs analyze the logistics
activity to obtain real-time information on the performance of the facility.
Enhance logistics planning: Information systems make it possible to
monitor a product's supply chain and collect data so that the manager has all
the information needed for logistics planning.
Figure 9 System Functions
Source: Rossum.ai
Logistic Information System Information Solutions
Those are digital solutions in charge of extracting and processing various logistics
activities to facilitate conflict resolution, decision making, strategic planning and
management of the supply chain, either in its entirety or only in some of its stages
(procurement, storage, dispatch, distribution, transportation, etc.).
Figure 10 System Solutions
Source: mdpi.com
What is ERP
Enterprise Resource Planning is a software system that operates the business,
supporting automation and processes in finance, human resources, manufacturing, supply
chain, services, purchasing, among others.
It is also known as the central nervous system of a company, as it is the central
intelligence that provides the efficiency to run all day-to-day business operations, finance
requires an ERP to close the books fast. Sales needs an ERP to manage all customer orders.
(SAP, s.f.)
Figure 11 ERP
Source: codeplus.es
ERP Systems on Logistics
Greater inventory optimization, by having all your products constantly in
mind, registered and with information about their status.
Better distribution of all your shipments, products, and orders.
More realistic, simple, and straightforward staff management. Greater
productivity in all your business processes.
Greater competitiveness in the market.
Better communication between all members of the company.
Fast and effective decision making.
Figure 12 ERP on LOGISTIC
Source: tibco.com
ERP Benefits
Optimize management processes: this is a tool that allows creating
coherence and homogeneity in the information for efficiency and
performance.
Improve the decision-making process having the information in a single
database and real-time availability speeds up response times.
Data security: since it is centered in a single mother computer, which is
protected by an access.
Modularity and scalability: being a management tool, it will never slow
down a process of growth or evolution of the company.
Adaptation to real needs: through an audit the requirements and needs of
the company are defined, the ERP is configured and fully adapted to it.
Greater control and traceability: any interaction will be recorded,
allowing a comprehensive monitoring.
Automation of tasks: the realization of reports, communications or claims
can be optimized to reduce resources and focus on the most important ones.
(Quiles, 2018)
Figure 13 ERP BENEFICTS
Source: dropoff.com
Automatic Identification Technology
The generic designation of the various technologies used for automatic
identification.
It is a process used to identify and collect data. Once the collection is completed, the
data is automatically stored in a computer system, where it is then sorted and, depending on
the software, aggregated.
Within this series of processes, we can identify different existing technologies
which stand out, which as:
Barcodes
RFID (Radio Frequency Identification)
Iris and facial recognition systems (biometrics).
Optical Character Recognition (OCR).
Magnetic strips
Smart cards
Voice recognition
All these technologies use AIDC in unique ways but are synthesized differently
depending on the intricacies of the processes. (masterlogistica, 2021)
Figure 14 AIT
Source: arcweb.com
Logistics activities in Suplain Change and the benefits of application.
There are three main phases that make up the supply chain:
1. Procurement: refers to how, where and when raw materials are procured
and supplied for the manufacture of products.
2. Production: involves the transformation of raw materials into finished
products.
3. Distribution: this stage deals with the activities that make it possible for the
products to reach their destination. This is achieved through a network of
distributors, warehouses, physical stores, or online platforms (if the business
is an e-commerce).
Figure 15 Suplaing Change in Logistics
Source: sap.com
The importance or benefit of a good supply chain management are:
Customer loyalty: thanks to efficiency in production processes, customer
service improvement in delivery time or purchase conditions.
Better control: With the process defined, we can know in real time where
the product is in the chain. This allows greater control with external factors
such as suppliers.
More profitability: All operating costs in the supply chain are reduced by
20-30%.
Leadership: A good supply chain implementation leads to good results for
an organization. It will also make you stand out in the market as a leading
company.
Greater unity in the team: Each actor knows their roles, when to perform
them and the importance of working as a team.
(Estaun, 2023)
Conclusion
The different elements that make up the logistics information system include
procedures, people, information technology and the functions involved such as planning,
controlling, monitoring and controlling all the processes involved in logistics activities,
contributing to decision making, satisfying the growing demand of customers and, in the
same way, giving the company a competitive advantage.
Bibliography
Estaun, M. (5 de 01 de 2023). La Cadena de Gestión de Suministro (SCM): qué es y cuáles
son las ventajas que ofrece. Obtenido de IEBSSchool:
https://www.iebschool.com/blog/cadena-gestion-suministro-negocios-
internacionales/#:~:text=Te%20detallamos%20cu%C3%A1les%20son
%20los,piensen%20en%20estos%20determinados%20productos
masterlogistica. (2021). ¿Qué es la identificación automática y captura de datos? Obtenido
de MasterLogistica: https://www.masterlogistica.es/que-es-la-identificacion-
automatica-y-captura-de-datos/