Chapter Three Logistics Information Systems
I. Learning objectives and requirements
1. to know why timely and accurate information is critical for effective logistics systems design and operations 2. to know four levels of SCIS’s functionality including transaction systems, management control, decision analysis, and strategic planning 3. to understand the comprehensive information system integration 4. to know how firms obtain access to supply chain applications 5. to understand the comprehensive information system integration 6. to know the remarkable advances in logistics communication systems capability

II. Learning contents Section I. Information System Functionality
1. Main contents 1) Why Timely and Accurate Information is Critical for Effective Logistics Systems Design and Operations. (“Without accurate information the effort involved in the logistical system can be wasted.” in Chapter Two) There are four reasons why timely and accurate information has become more critical for effective logistics systems design and operations:a) Customer perceive information about order status, product availability, delivery schedule, shipment tracking, and invoices as necessary elements of total customer service. Customers demand access to real time information. b) With the goal of reducing total supply chain assets, managers realize that information can be used to reduce inventory and human resource requirements. In particular, requirements planning using the most current information can reduce inventory by minimizing demand uncertainty. c) Information increases flexibility with regard to how, when, and where resources may be utilized to gain strategic advantage. d) Enhanced information transfer and exchange capability utilizing the Internet is changing relationships between buyers and redefining channel relationships. (“channel relationships”, see PP.109-114) 2)