Managing information flows

- "As a general rule, the most successful man "in life is the man who has the best information." Benjamin Disraeli said that more than 100 years ago. But it certainly applies to doing business today. The logistics world runs on information systems and information sharing. I cannot overemphasize the important role information plays in a successful logistics strategy. Information gives logistics managers critical visibility into activities that are often spread all over the globe. And a wide variety of information is needed for both day to day and long term decision making. In general, this business information has five characteristics. First, information must be accessible. And today's advanced information technology systems help to get the right information into the right hands. Second, information should be shared throughout the logistics network, not just within your own organization. But with suppliers, contractors, and customers as well. Also, information must be relevant. We all know that there's an abundance of data in the business world. Companies need the ability to analyze that data and turn it into meaningful information that can be used to make effective decisions for their logistics network. Of course, you also want information to be accurate and timely. To make good decisions, you need correct information at the right time. Lastly, you need this information to be transferrable. And that brings us full circle back to the IT department. Information must be in the right format to transfer quickly through your logistics network to the people who need it. Many people believe this flow of information is the most critical process for effective logistics management. Information flow relates to how information moves throughout your organization and your supply chain. As logistic systems spread further and further from corporate headquarters, information becomes even more important for business success. Information should flow between you and your customers, between you and your suppliers, and within your organization from department to department. Keeping those information paths and communication processes as simple as possible helps to ensure your information is both accurate and timely. The flow of information has two key features that are important for you to consider. Speed, which is how fast the information moves through your logistics network. And variability, which refers to the rate at which information is transferred or made available. Sometimes we get a lot of information. And sometimes we get little information. And sometimes the information is not very clear or accurate. One strong recommendation to help you understand your information flow is to map the process itself. To simply draw a picture of it. This first step can help you to better understand how information moves and where potential problems may lie. If you can't easily draw the process map, perhaps your information and communications systems are too complex. Good communication and information sharing throughout your logistics network can lead to better forecasting, lower inventory levels, and decreased order cycle times. These benefits can give your organization a clear competitive advantage.