Public Finance Management Act, 1999 (Act No. 1 of 1999) Understanding and Using this Act In Year Management, Monitoring and Reporting Annexure E4: LOGIS - Features, Functionality and Control

 

LOGIS is a provisioning, procurement and stock-control system which is highly adaptable to the requirements of any department. The structure or primary components of the system enable it to be implemented in any store or depot situation.

 

LOGIS Features

 

Supply Chain Management Best Practice

 

LOGIS subscribes to sound supply-chain management best practice in providing for the classification of items by Pareto analysis, also known as the 80/20 principle , or the ABC classification method. This inventory management technique ensures optimum levels for the 20% of items in a store, which comprise 80% of the value of the store stock. The benefits of this are widespread, a few examples are:

 

Asset Management

 

LOGIS enables the recording and tracking of each serialised item (asset) within a store, thereby entrenching accountability and control. Items which are serialised are normally high-value, nonconsumable items. These items are often issued to a sub-division or entity within the store, and should be returned to the store when no longer needed. LOGIS also enables asset verification, asset reporting and disposal of assets.

 

Batch Numbers

 

LOGIS controls batch-numbered items according to the expiry date of the item, ensuring a first-in, first-out issuing of batch items. Batch number warning reports are printed of stock reaching the expiry date.

 

FMS Interface

 

The LOGIS interface to the Financial Management System (FMS) enables automated payments, reduces double-payments, late payments, payment penalties, fraud and error opportunities, and brings greater control over expenditure.

 

Re-useability of Stock

 

LOGIS enables the transfer of excess stock from one store to another. These stock figures are available before placing an order to a supplier, thereby entrenching the re-useability of stock within government .

 

Management Reporting

 

The LOGIS Balanced Scorecard offers management a comprehensive view of the operations within all stores and departments on LOGIS, focussing on aspects of service delivery, cost savings and continual improvement, as well as financial control.

 

Cataloguing

 

LOGIS offers an easy-to-use item catalogue, categorised according to logical item groupings known as the MIIN (Management Information Item Numbers).

 

Flexibility

 

LOGIS is adaptable and flexible in usage, enabling it to be implemented by diverse stores within Government. It has varying levels of control, offering the user flexibility in the usage and control of the system, according to the level of control required within their department / store. Only the low-level or base-functionality controls are prescribed and cannot be modified by the user.

 

LOGIS Functionality

 

Provisioning

 

LOGIS offers functionality to support the provisioning of stock via:

 

Procurement

 

LOGIS supports the complete Order-to Cash process of procurement via:

 

Financial Interface

 

LOGIS offers functionality to support the financial interface to the Financial Management System (FMS) via:

 

Service Assessment

 

LOGIS offers on-line functions to assess the status of service provided to the end customer.

 

Stock-Take Functionality

 

LOGIS prompts stock-takes to occur when they fall due on various stock groupings. It performs automatic stock freezing and unfreezing during the stock-take period, and provides functionality to adjust stock balances according to stock-take balances.

 

Year-End Functionality

 

LOGIS provides year-closure functionality according to Treasury Instructions and offers automatic re-classification of items according to usage patterns, thereby ensuring end-to-end stock control.

 

Weapon and Machine Registers

 

LOGIS contains a register of all weapons and machines on inventory, as well as complete allocation information.

 

Bin Allocation

 

LOGIS provides bin-allocation, bin numbering and control for each item within a store.

 

On-Line Searches and Enquiries

 

LOGIS assists the user with data entry by providing easy-to-use searches all relevant data fields. LOGIS also offers many enquiry functions which give users access to vital information.

 

LOGIS Control

 

Government Logistic Policies

 

LOGIS complies with the Policies and Procedures specified by the National Treasury (Norms and Standards).

 

Stock Control

 

LOGIS provides control of stock through the management of inventory levels, thereby providing the right item to the requestor at the right time.

 

LOGIS Balanced Scorecard

 

The LOGIS Balanced Scorecard is a highly-successful strategic management and measurement tool, which translates the LOGIS vision and objectives into tactics, measuring across a balanced set of perspectives. Key performance measures are assessed monthly and communicated to all levels of users and management.

 

Data Integrity and Security

 

LOGIS provides solid data integrity and data security, and has full audit-trail capabilities.

 

Supplier Management

 

LOGIS tracks the delivery performance of suppliers, detailing the status of each delivery (under or over-delivery, late or early deliveries or partially delivery). This information can be used in the assessing and awarding of contracts to suppliers, as good supplier management is key to effective and efficient control.

 

EFT payments

 

LOGIS enables the automation of payments via Electronic Fund Transfer (EFT) to suppliers, thereby capitalising on payment discounts. Supplier banking details are automatically verified with data from various banks before payment is made to the supplier.

 

LOGIS Future Enhancements

 

Online Integration with the Basic Accounting System (BAS)

 

Online, real-time, seamless integration with the Basic Accounting System for operating accounts will enable commitment of funds, budget checking and blocking, automated payments and general expense control according to Generally Recognised Accounting Practices (GRAP) principles.

 

Training and Management Reporting

 

Training users in stock control techniques and benefits, in order to understand stock management, using LOGIS and the LOGIS Balanced Scorecard as a tool.

 

International Cataloguing Standards

 

The inclusion of the UNSPSC and EAN/UPC standards for cataloguing will facilitate easier stock redeployment, disposal, goods receiving, improve item and asset tracking and further enhance stock control capabilities.

 

PFMA-Compliance

 

The LOGIS system will be adapted according GRAP as defined in the Public Finance Management Act (PFMA).