Logistics Management Information System
MISAPPLICATION IN MATERIAL / LOGISTICS
Logistics is the art and science of regulating and controlling the flow of goods, energy, information, and other resources, such as products, services, and people, from production sources to markets to optimize their use.
Capital Manufacturing and marketing will be difficult to do without logistical support. Logistics also includes information integration, transportation, inventory, warehousing, reverse logistics, and packaging.
Based on the above definition, the logistics mission is "to get the right goods, at the right time, with the right amount, right conditions, at affordable costs, while still contributing profit to logistics service providers."
Therefore, logistics always struggle with finding a balance for 2 things that are very difficult to synergize, namely reducing costs as low as possible while maintaining the level of service quality and customer satisfaction. In a business world that is always changing, good logistics management is a must.
THE ORIGIN OF LOGISTICS
The word logistic comes from the Greek logos (λόγος) which means "ratio, word, calculation, reason, speech, oration". The word logistic has its origin from the French word longer which is to settle or provide.
Its original use is to explain the science of movement, supply & maintenance of military forces in the field. Later used to describe the management of the flow of goods in an organization, from raw goods to finished goods.
Logistics is a concept that is thought to have evolved from the need for the military to meet their supplies when they go to the battlefield from headquarters. In the ancient Greek, Roman, and Byzantine empires, there was a military officer with the title 'Logistikas', who was responsible for the distribution and funding of war supplies.
The Oxford English Dictionary describes logistics as "The branch of military science relating to procuring, maintaining and transporting material, personnel, and facilities." Another definition is "the time-related positioning of resources." Therefore, logistics is usually seen as a general branch of engineering that makes "human systems" not "machine systems."
During the Trojan war, Greece sent 1200 ships to Troy. For this war, the Greeks could not afford to bring enough food and money. Therefore, they had to grow food in Troy and continue to make small raids to find supplies.
Because of this logistical problem. , they could not launch a decisive and significant attack to end the Trojan resistance. This war lasted for ten years. Greek historian Thucydides (460-400 BC) explained this issue and stressed the importance of the existence or absence of logistics in warfare.
However, there is also evidence that the Greeks at that time understood the importance of logistics. Among the sentences in Homer's epic is about Achilles' new shield. In his explanation, the city of Troy being besieged, but instead of attacking the camps of the Greeks, the Trojans attacked the sheep belonging to the Greeks, and this slowed down the Greek army.
Not only the Trojans, but the Greek troops also tried every effort to save their sheep given how important the food supply was to their continued siege of the city of Troy.
One of the first war campaigns in ancient times was the Persian Wars. The Persian king Xerxes I went to battle in 480 BC with about 100,000 troops with him to several cities in Greece. Due to a large number of Persian troops, logistical supplies could only be made by sea because by road was too difficult at that time.
Therefore, Xerxes' troops advanced to the battle, escorted by a fleet of warships and cargo ships. After losing the battle of Salamis, the king had to retreat because he was worried about the loss of the connection between the supply chain and his troops in front.
In military science, maintaining supply lines while disrupting enemy lines is crucial - Napoleon even says logistics is the most important factor - in military strategy because an armed force without resources and transportation is powerless.
The defeat of Britain in the American War of Independence and the defeat of the Axis on the African battlefield of World War II were all due to logistical failures. Historical leaders such as Hannibal Barca, Alexander the Great, and Duke Wellington were considered logistical geniuses.
ILS (Integrated Logistics Support) is a discipline used by the army/military to ensure a strong support system with supply services (logistics), the concept of thought is the lowest cost and according to needs, reliable, adequate supply, maintainability, and others as a requirement. set for it.
In military logistics, logistics officers manage how and when to move resources to where they are needed. Supply chain management in military logistics usually intersects with certain variables to predict costs, deterioration in quality, consumption, and future demand.
US Army categorization is the supply classification developed in such a way that supplies with similar consumption categories are grouped into separate groups for further planning purposes. For example, consumption in peacetime for ammunition and fuel will be less than during wartime, when other supplies such as food and clothing have a constant consumption ratio regardless of war or peace. Troops will always need uniforms and food, more troops means more food and uniform needs.
Logistics management is part of the supply chain process which functions to plan, implement, and control the efficiency and effectiveness of the storage and flow of goods, services, and related information from the point of origin to the point of consumption to meet the needs of customers.
Management Information Systems
According to Davis (1984: 3):
Management Information Systems are an integrated system between humans and machines that are capable of providing information in such a way as to support operations, management, and decision-making functions within an organization. The system uses hardware and software (software and hardware), manual procedures, models for analysis, planning, and decision making as well as databases.
Thus it can be concluded that the Logistics Management Information System is an integrated information system between humans and computers and functions in inventory management to provide information for analysis, planning, operations, and control, in supporting management decision making in an organization.
Data are facts collected from observation or measurement, while information is data that has been processed into a form that is meaningful to the user and has real meaning in current and future actions in decision making. The relationship between data and information is like raw materials and finished goods.
Furthermore, the information will only have value as long as it influences the decision-making process and the results are better than decision making without this information. To be useful for the decision-making process, the information must be up-to-date, available in a timely and efficient manner.
So an information system is a system that functions to process data into information. More precisely, the information system processes data that is not ready to be used into a form that is ready to use in the form of information for the user concerned.
All information systems have 3 main uses, namely: collecting data as input, then process it by performing calculations, combining data elements, updating and so on, and obtaining information as to its output.
2. The elements of an information system include:
a. Transaction processing information
system. It is a data processing system whose main task is a transaction processing system at the operational level, which can have inputs from outside (external) or from within.
b. Information system for managers
This system was created to generate information that can be used for managers to control operations, strategy, long-term planning, short-term planning, management control, and specific problem-solving. In a computerized system, the program continuously monitors transactions Processed or recently used to identify and automatically report management environments that need manager attention.
With the help of this system, managers can easily control the operations of the company/organization and managers can make business decisions quickly and precisely because the manager is getting actual information.
c. Intelligence information
Intelligence information system is a managerial support system for the preparation of long-term planning and operational budgeting. This system is tasked with finding and analyzing information on the social, political, legal, statutory, and economic environment.
From a country / more, also, to know about the health and industry prospects of the company where the company concerned is located. It also contains information about its competitors. This system will provide planning information and will reduce the number of time managers has to spend gathering planning information so that managers will have more time to do other tasks.
d. Decision support
system An information system designed to support managers in making management / organizational decisions. Therefore this system tends to be designed for service managers in the middle (middle) and senior levels.
Specifically, this system uses a model. A model is a series of programs, usually containing mathematical equations, that describe a problem-specific management task. By slightly changing the model or data entered, the manager will be able to solve the problem.
INTEGRATED LOGISTIC MANAGEMENT
Integrated Logistics Management is a logistics management activity that includes 2 related fields, namely: logistics organization and logistics coordination.
1. Logistics Operations are physical activities
Physical distribution management concerns the problem of transporting products to customers. In physical distribution, subscriptions are seen as the last stop in the marketing channel. Material management is about the procurement and transportation of materials, spare parts, and/or inventory of goods from the place of purchase to the place of manufacture/warehouse assembly or a retail store.
The internal transfer process is about controlling the intermediate components as they flow between the manufacturing stages and the initial transport of the finished product to the warehouse or the retail channel.
2. Logistics Coordination, which concerns communication and planning activities
This field includes identifying the need for movement and establishing a plan to integrate all logistics operations, including:
a. Forecasting (forecasting)
b. Order processing
c. Operation planning
d. Planning for material requirements (procurement)
INFORMATION SYSTEM RELATIONSHIP IN LOGISTICS
The management information system is an operational system that carries out various functions to produce useful outputs for the operation and management of the organization concerned.
The output of the information system is:
1. Transaction documents, such as sales invoices, payroll receipts, subscription accounts, and purchase orders.
2. Reports that are planned, the contents, and the form have been planned, such as reports on sales, inventory, and flow of funds.
3. Reports and answers to questions that are temporary, occur at irregular times, and require unplanned data or analysis.
4. Human/machine dialogue, is a way in which a user can interact with a model to obtain a satisfactory solution. The model referred to is the factory planning model, the investment analysis model, etc.
The purpose of the information system is designed to provide information for each functional unit.
The structure of the information system based on management activities is:
1. Operational control, a strengthening process so that operational activities are carried out effectively and efficiently.
2. Management control, required by various department managers, profit centers, and to measure performance, decide control measures, formulate new decision rules to apply operational personnel, and allocate resources.
3. Strategic planning, developing strategies as an organizational means to achieve goals.
Logistics functions include activities such as purchasing, receiving, inventory, and distribution. Then the information structure includes:
1. Transactions that must be processed include purchase requests, purchase orders, production orders, receipt reports, supplies, transportation requests, and transportation documents.
2. Operational control, using information contained in lists and reports such as previous purchases, previous deliveries, goods not in stock, excess goods, inventory turnover reports, summary sales achievements, and transportation performance analysis.
3. Control Information Information for logistics consists of comparisons between planned and actual inventory levels, purchase prices for goods, turnover, and so on.
4. Strategic planning involves analyzing new distributions, new policies related to sales, and a make or buy strategy. Information about new technologies, distribution alternatives, and so on, becomes necessary.
Computer technology which is a supporter of information systems is changing very rapidly and vice versa is not supported by the development of the concept of the information system itself which tends to develop slowly. This is due to changes in the capacity and cost of hardware and software used by the system.
It is emphasized that identifying information needs will then determine a system that meets those needs. This is because each organizational function and individual decision-makers in it differ in their needs and use of information.
With existing technology, it causes expensive systems that are tailored for each individual. but with the development of hardware devices, software, and of course information systems methods open opportunities for managers to have a system by critical decisions that must be taken.
This is very important especially for managers in the logistics department who are directly dealing with the market which is always vulnerable to changes
Maximizing IT Functions in Logistics Management / SCM
In terms of manufacturing, the warehouse is a means for storing goods to support operations, whether it be production operations or production operations. Therefore, the existence of the warehouse is considered only as a support for management. In contrast to the production department which is always considered more important than the warehouse division. In terms of investment, management prioritizes production over the warehouse section.
Because management considers production to be a business especially in terms of manufacturing. If the warehouse has reliable warehousing management, then this will provide a significant contribution to management.
Especially in terms of IT. So far, the IT function in the warehouse department, mostly only provides information related to the internal warehouse, such as stock positions and inventory movements. But if the IT function in warehouse management is maximized, it will make a big contribution to management.
These contributions include:
1. Knowing the position of placing goods that can minimize the process of searching for goods
2. Knowing the position of good goods, damaged goods, or items that still need further handling
3. Knowing the minimum stock position which can provide information for PPIC to be followed up with purchases
4. Providing information related to the FIFO, LIFO system, or the retrieval of the specified goods system
5. As a basis for purchasing planning