| In this article we look at the specific benefits of a | | | | performance.Inventory: Documents generated |
| good document management system in the | | | | would include Goods Received Notes, Material |
| logistics business. We look at the business of | | | | Requisitions from consuming departments, |
| logistics. We also look at the kinds of documents | | | | Materials Issue Acknowledgments, Accounting |
| generated by the business. Finally, we look at how | | | | records, Bin Cards, Inventory verification reports, |
| a logistics business could benefit from using a | | | | List of reorder points and Goods replenishment |
| good document management system.What Is | | | | requests. A centralized computer-based system |
| Logistics?When you bought that cheap pencil | | | | could eliminate the need for many paper |
| made in China, did you wonder how it reached | | | | documents and could speed up transactions. Such |
| you all the way from some factory located in a | | | | a system would also enable concerned persons to |
| remote part of China? The answer is: Logistics. It | | | | verify current availability of needed materials. |
| was logistics that made the pencil available at the | | | | Purchasing: Documents would include Suppliers lists, |
| store near you. Logistics has been defined as the | | | | Purchase requests, Invitations to quote or bid, |
| art and science of managing and controlling the | | | | Quotes and bids received, Comparison reports, |
| flow of goods, energy, information and other | | | | Correspondence and negotiation records, Supplier |
| resources like products, services and people, from | | | | assessment reports, Purchase order copies and |
| the source of production to the marketplace. | | | | Inspection reports. A Web-based system could |
| More specifically, it involves having the right item | | | | make locating and communicating with |
| in the right quantity at the right time at the right | | | | prospective suppliers, even if they were located |
| place for the right price. | | | | at the other end of the world, far easier. All |
| Project Management | | | | communications could be put on record without |
| Logistics management does not simply involve | | | | difficulty. This system could be integrated with the |
| assembling all the requirements. You cannot just | | | | internal inventory system for error-free |
| get these from wherever available and dump | | | | synchronization. |
| them all at the site. The following additional tasks | | | | Transport: In these days of tracking numbers and |
| are key to good logistics management:Sequencing | | | | worldwide shipments, it is absolutely essential to |
| and scheduling the requirements to identify when | | | | have Web access to track all shipments. When |
| the requirements for each item would arise, | | | | integrated with purchasing and sales systems, the |
| Locating the right quality of items that would | | | | status of each purchase or sale order could be |
| ensure a successful commissioning and | | | | tracked from commencement to completion. |
| subsequent operations of the project, ocuring | | | | Pending overdue orders could then be flagged for |
| these and transporting to site at the best available | | | | immediate attention. |
| prices and other terms, and arranging for the | | | | Warehousing: Similar to inventory, a centralized |
| proper storage of items delivered at site until | | | | system could not only speed up transactions but |
| needed to prevent damage or loss.A large | | | | also enable availability verifications. Considering that |
| number of documents would typically be | | | | the warehouses could be located at geographically |
| generated during the above processes. These | | | | spread locations, true logistic planning operations |
| include: | | | | could be carried out to deliver merchandise to |
| List of project requirements and/or purchase | | | | different markets in an optimized manner. Times |
| requests.Time schedules indicating required | | | | and costs could thus be minimized. |
| dates.Specifications and cost estimates.Tender | | | | Planning & Organizing: Information is the key |
| documents where bids are invited.Supplier and | | | | input for effective planning and organizing. With |
| transporter quotations and comparison | | | | the kind of centralized and up-to-date information |
| statements | | | | availability ensured through the systems outlined |
| Reports on quality and performance | | | | above, it would be far easier to assess |
| evaluations.Correspondence with suppliers and | | | | requirements, explore alternatives, collect |
| transporters.Purchase order copies | | | | information, communicate with suppliers, |
| Inspection and compliance reports | | | | transporters and distributors, and continuously |
| Invoices received from suppliers and transporters | | | | monitor performance. |
| Payment documents | | | | The Document Management System |
| Inventory records relating to receipts, issues and | | | | A Web-based system integrated with internal |
| balances | | | | systems could transform conventional logistics |
| Item movement records (internal transport to | | | | management beyond recognition. It would now be |
| final consumption. | | | | possible to manage operations of a global scale |
| Accounts payables | | | | even more easily than those within a small |
| Document Management: Up to the second | | | | geographical area.A Web-based system means |
| information.A good Web-based tracking system | | | | that much of the information would be stored on |
| could keep constant track of each item on its | | | | a server accessible over the Internet. As a result, |
| way from point of origin to point of consumption. | | | | outside persons could access up-to-date |
| You would then become aware of any | | | | information from wherever they are. The only |
| bottlenecks and could take immediate action | | | | requirements would be that they should have an |
| (most likely a Web-based action) to tackle | | | | Internet connection and should be authorized to |
| these.Each shipment is assigned a tracking code | | | | access the document. |
| and all the nodes on its path would use this code | | | | Business Benefits |
| to update its receipt and dispatch. The updating | | | | The following specific benefits would result from a |
| would be done to relevant documents at a central | | | | Web-based and integrated logistics management |
| server. By accessing updated documents, | | | | system.Better control over logistic operations |
| concerned persons would be able to monitor the | | | | making it possible to achieve desired goals and |
| shipmentâs progress. | | | | performance standards.Speedier business |
| Logistic Functions | | | | transactions and internal operations leading to |
| In the following functions, good document and | | | | higher business volumes. |
| information management is essential for effective | | | | |