Role of Information Technologyin Supply Chain

Logistics Tech Outlook | Tuesday, September 07, 2021

Logistics information systems use a combination of hardware and software to manage, control, and measure logistics activities both within and across organizations.

FREMONT, CA: For many years, computers and information technology have been utilized to aid logistics and supply chain management. With the emergence of microcomputers, the use of information technology in the planning and control of supply chain activities (including logistical activities) has exploded. Information has become a significant aspect of management planning and control in modern management.

Information technology is now widely regarded as a critical component influencing the growth and development of logistics and supply chain management. This article identifies how information may improve the effectiveness of logistics and supply chain management decisions, the role of information management in the formulation of supply chain strategy, and the concerns from an operational standpoint.

Effective Information Management

Effective information management can assist a company in meeting its clients' logistical requirements. On-time delivery, stockout levels, shipment tracking and expediting, order status, order convenience, order completeness, backhaul opportunities, customer pick-up creation, and product replacement must all be prioritized by businesses. These operations are the responsibility of logistics managers, and they can only be carried out successfully if they have access to timely and accurate information. Logistics activities play an important role in addressing consumer needs, and a reliable and up-to-date information system can help with the logistics objective.

Useful Confluence of Software and Hardware

Logistics information systems use a combination of hardware and software to manage, control, and measure logistics activities both within and across organizations. Computers and servers, ancillary technologies internet technologies, including barcode and RF devices, communication routes, and storage media are all examples of hardware. Firms that can integrate and exploit the potential of technology are more successful than those unable to do so.

Assists in Decisions Support Systems

Companies require more information on their customers (for example, customer service and sales forecasting) and information about their suppliers. (Examples include production planning, sourcing, and purchasing.) Decision support systems/ information technology and logistics management operations were not providing management with the information they required to make strategic decisions.

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