Document Management in Logistics
Continuous Tracking of Items Shipped Is the Key Function
We saw on another page that while logistics involves managing procurement and warehousing, its key role is geographical repositioning. It follows that the special feature of a good DMS in logistics would be tracking the movement on a continuous basis. Under modern Web-based systems, the shipper can know the exact status of the shipment just by logging on to the carrier's website, and entering the tracking number of a particular shipment.
The carrier would assign a unique tracking number to each shipment. Each node on the route of the shipment would then enter the receipt and despatch dates and times of the shipment. The shipper, as well as the carrier, could monitor the status by using the tracking code.
In the next section, we look at the key functions involved in logistics and the management of documents generated by these functions.
Document Management
The following procedures are only indicative. Practices and document names could differ from organization to organization. We use descriptive document names to clarify what is meant.
- Procurement Management: Material Requisitions->Checking Inventory records for availability->Initiating Purchase procedures if unavailable->Selecting suppliers through competitive bids or negotiations->Placing purchase orders->Monitoring timely deliveries against orders
- Inventory Management: Inspection of supplies received->Acceptance if quality is as agreed->Goods Received Note->Inventory ledger entry->Material Issue Note when goods are issued to user departments->Inventory ledger entry->Materials Return Note when user department returns unused materials->Inventory ledger entry->Periodic verification of physical balances against inventory ledger balances
- Transportation Management: Selecting couriers/carriers through competitive bids or negotiations->Selecting the best courier or carrier for a particular shipment->Shipping Note for merchandise shipped->Tracking the shipment until it is delivered to consignee
- Warehousing: Identifying the storage requirements for different materials->Arranging warehousing facilities that meet the requirements->Locating and negotiating suitable warehousing facilities if not available in-house->Contracts or agreements with warehouse owners
These days, documents are managed with the help of computer-based systems. At least parts of the system could be Web-based (as in the case of shipments tracking above). When document details are stored in a central server computer, the workstation computers in different departments could access these details as needed. Movement of both physical documents and/or persons could be minimized. Damage and loss of physical documents could also be minimized as these are handled infrequently.
The DMS would capture document details through data entry or scanning (and where necessary, OCRing). Retrieval of documents could be through standard system procedures or search procedures. Access to documents would be restricted to authorized persons through the use of passwords. Firewalls, antivirus programs and spyware programs would protect the data from malicious attacks. Backup procedures (including checking the recoverability of backed up data) would ensure safe preservation of the records.
Conclusion
Tracking shipments from point of origin to destination is done through Web-based tracking systems. This is the key specialist feature of logistics systems. The other components of logistics, procurement, inventory and warehousing, follow standard practices.