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 and science of managing and controlling the flow of goods, energy, information and other resources like products, services and 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 and dump them all at the site. The following additional tasks are key to good logistics management:
Sequencing and 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 and subsequent operations of the project,
Procuring these and transporting to site at the best available prices and other terms, and
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 and/or purchase requests
Time schedules indicating required dates
Specifications and cost estimates
Tender documents where bids are invited
Supplier and transporter quotations and comparison statements
Reports on quality and performance evaluations
Correspondence with suppliers and transporters
Purchase order copies
Inspection and compliance reports
Invoices received from suppliers and transporters
Payment documents
Inventory records relating to receipts, issues and balances
Item movement records (internal transport to final consumption)
Accounts payables
Document Management:
Up to the second information
A good Web-based 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 and could take immediate action (most likely a Web-based action) to tackle these.
Each shipment is assigned a tracking code and all the nodes on its path would use this code to update its receipt and 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 and 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 and Goods replenishment requests. A centralized computer-based system could eliminate the need for many paper documents and 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 and bids received, Comparison reports, Correspondence and negotiation records, Supplier assessment reports, Purchase order copies and Inspection reports. A Web-based system could make locating and 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 error-free synchronization.
Transport: In these days of tracking numbers and worldwide shipments, it is absolutely essential to have Web access to track all shipments. When integrated with purchasing and 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 merchandise to different markets in an optimized manner. Times and costs could thus be minimized.
Planning & Organizing: Information is the key input for effective planning and organizing. With the kind of centralized and up-to-date information availability ensured through the systems outlined above, it would be far easier to assess requirements, explore alternatives, collect information, communicate with suppliers, transporters and distributors, and continuously monitor performance.
The Document Management System
A Web-based 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 Web-based system means that much of the information would be stored on a server accessible over the Internet. As a result, outside persons could access up-to-date information from wherever they are. The only requirements would be that they should have an Internet connection and should be authorized to access the document.
Business Benefits
The following specific benefits would result from a Web-based and integrated logistics management system.
Better control over logistic operations making it possible to achieve desired goals and performance standards
Speedier business transactions and internal operations leading to higher business volumes
Possibility of getting requirements from the best sources worldwide at lower costs and better quality leading to enhanced profitability and customer satisfaction
In this article, we seek to identify the tangible business results that a good document management system could produce for a legal practice. We look first at the business of legal practice, then at the documents generated in this business and finally examine how a document management system could improve business results.
Law Firms and Legal Practice
Law firms carry out legal practice. A law firm could be created by a single lawyer setting up a practice or it could be an association of a thousand or more lawyers working as partners, associates and/or in other roles.
Legal practice typically consists of:
Providing advise to clients about their legal rights and responsibilities
Representing clients in civil or criminal cases
Representing clients in business transactions like mergers and acquisitions
Smaller firms usually focus on single specialties such as patent law, labor law, tax law, antitrust, intellectual property, telecommunications, criminal defense and personal injury. Larger firms have specialist groups that focus on different specialties, thus enabling the firm to serve a much wider range of clientele.
Documents in Legal Practice
Documents are the "bread and butter" of lawyers. In fact, large corporate law firms might adopt the strategy of litigating on every issue and burying their opponents under a ton of paper.
More typically, however, the following kinds of documents are generated in a legal practice.
Law library - Lawyers need to refer to statutes and rules to identify the finer points of law that apply to their current assignment. They would also need to look up past legal interpretations and precedents that are applicable. A large library of statutes, regulations and case law is thus a typical part of their armory.
Time sheets and work records - Lawyers bill for the time they spend on particular assignments. It follows that they must meticulously record the time they spend on each assignment and the kind of work they do. Otherwise, they might under or overcharge their clients, leading to undesirable results.
Cash management - It has been estimated that lawyers have to keep in reserve adequate cash to meet different payable commitments for 105 days. The work they do remains unbilled on an average for 65 days. Billed work remains unpaid for a further 70 days. As a result they get cash for their work after 135 days. They themselves might be able to get 30 days credit for paying their payables. Deducting this 30 from the 135, they have to find cash for the payments due during the remaining 105 days. Effective management of cash flows would need continuing preparation and updating of control documents like
Cash Forecasts
Unbilled work and times
Unpaid bills and due dates
Schedule of payables by due dates
Accounting - Like any business establishment, law firms also have to keep proper records of their fixed assets, liabilities, revenues and expenses. Different kinds of "books" have to be kept and reports generated in this process.
Payroll - Though part of accounting, payroll deserves special mention considering the many statutory requirements to be complied with when compensating employees. Employment contracts, attendance records, pay and benefits computations, pension funds and health and safety related documents all go to make payroll an elaborately documented function.
Correspondence, contracts, briefs and other documents - These kinds of documents are the "raw materials" and "finished products" of this business. In a sizable practice, their volume would be huge, posing problems for effective management.
The number of "finished products", in the shape of the large number of "forms" such as Landlord-Tenant agreement, Mortgage agreements, M&A agreements, Employment contracts, Supply contracts, Last Will & Testament, and so on are bewildering.
Managing the Documents in Legal Practice
Good document management is critical for a successful legal practice. To look at some key result areas:
These days, instead of creating and maintaining a law library of bulky paper books, law firms subscribe to online databases that are continuously updated. These databases provide search facilities that bring up relevant documents in a fraction of the time taken traditionally.
The time you spent for each client must not only be recorded, but also billed without fail. A system must be in force to ensure failure-proof billing.
Cash flows must be estimated and arrangements must be made to meet any shortfalls foreseen. This again is achieved by managing the creation, updating and review of relevant control documents and the practice of taking timely action warranted by the situation thus forecast, in a systematic manner.
Accounting records must not only be "kept" but also used to generate timely and meaningful reports on key result areas such as profitability, timely billing and recovery, and excessive spending over estimated levels.
Computerized accounting and payroll systems could speed up the processes, generate more meaningful control reports and avoid errors. All these contribute significantly to better business results.
Managing correspondence and communications is far easier, and less expensive, with Web-based systems such as e-mails and voice mails.
Instead of "reinventing" the numerous and complex forms such as different kinds of contracts, the law firm could download templates from Web libraries and adapt them to meet specific needs.
A good document management system would also allow you to document and classify the numerous briefs that you handle. Retrieval of any of these could be done in seconds under a well-designed system, so that you could handle the latest briefs more efficiently.
Collaborative working need not involve holding face-to-face meetings or moving sensitive documents around. Instead, different participants could access the up to date status by logging in to a secure server, and reviewing, commenting, and/or editing relevant documents.
Conclusion
A good document management system could:
Enable you to work with increased effectiveness, producing more and better quality results
Minimize errors and such hazards as damage to or loss of important documents.
Enable you to control critical areas like billing for time spent,
collecting bills sent and monitoring cash positions
Maintain excellent client relationships through effective
communication even if you are on the other side of the world
Monitor individual and overall results and take timely actions
Dustin Baker has sinced written about articles on various topics from Management Software Solutions, Software and Sales and Negotiation. About Author:Ademero, Inc. develops . Visit their web site devoted to. Dustin Baker's top article generates over 49500 views. to your Favourites.