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