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.
Reducing manpower
It will reduce the workload by using information technology. (example: using FRID can easily to tracking the cargo location)
Enhance competitiveness
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