www.theinternationaljournal.org > RJSSM: Volume: 03, Number: 10, February-2014 Page 72 Adoption and Effectiveness of Logistics Information System in Logistics Service Companies A.D. Shalini Prieya Research Scholar, School Of Management, Bharathiar University, Coimbatore-641046 Dr.S.Sankaranarayanan Associate Professor, School Of Management, Bharathiar University, Coimbatore -641046, Abstract The logistics sector in India has today become an area of priority. India's logistics service industry is forecasted to become an over Rs 5.55 lakh crore ($120.42 billion) market by 2014, driven by growth in the manufacturing sector as revealed in the study by global consultancy Frost and Sullivan. It is necessary to streamline the logistics process to maintain the efficiency of the logistics network. In addition to integrating information technology and advanced logistical approaches into their business operations, firms are beginning to realize the need to focus on their logistics strategy in order to efficiently maintain their supply chain capabilities. Purpose: The purpose of this paper is to identify and understand the organizational characteristics of Logistics Service Companies (LSC) in the study area where the Logistics Information System (LIS) is in use. Further in the present study an attempt was made to identify the factors underlying the effectiveness of Logistics Information System (LIS). Research methodology/Design/Approach: A review of main stream literature was carried out to identify the factors underlying the effectiveness of LIS. A total of 125 Logistics Service Companies were first listed as using LIS. Out of which 12 companies were excluded from the study as they did not participate in the survey even after repeated contacts. Hence census study had been adopted to contact the remaining 113 respondents. The data were collected using a structured questionnaire and analyzed with SPSS 18.0 in order to identify the factors for effectiveness of LIS. One way ANOVA was used for testing the hypotheses. Findings: The analysis revealed the factors underlying the effectiveness of LIS, namely organizational impact, user satisfaction, communication effectiveness, top management support and individual impact. It was found that the factors underlying the effectiveness of LIS did not vary with the size of the companies, amount spent for adopting LIS and years of LIS usage except one factor. It was found that the factor ‘individual impact’ varies with the amount spent for adopting LIS and years of LIS usage. Originality/value: The study addresses the lack of empirical research on how companies effectively use LIS in managing Logistics operations in India as it was evident the review of literature. Keywords: Logistics Information System, Logistics Service Companies, Organizational characteristics INTRODUCTION The basic objective of a good logistical system is to get the right goods or service to the right place at the right time in the right condition at the right cost. Effective logistics management requires the actual status of goods and services to be communicated in real-time to the various groups of people involved in the logistics process. This helps logistics service providers to improve their service by keeping a closer watch on inventory and taking the steps necessary to avoid losing customers. Pieter Klaas Jagersma (2011) noted that Information logistics aims at optimizing the total value and cost of generating, transferring, handling, storage, and controlling information across an organization’s value chain. Effective information logistics is a complex undertaking, but it is manageable. According to Philip Kotler (2013), the Market- Logistics tasks call for Integrated Logistics Systems (ILS), which include materials management, material flow systems, and physical distribution, aided by Information