Information Systems in Logistics by Alba Martínez

Most of us know that nowadays information systems are playing an important role in all companies. It is because of the fact that technology is growing in a faster way than previously, and they can achieve more efficient information methods. However, now we are studying business logistics, and it is important to know about the role of it in this area.

“A logistics management information system is a system of records and reports used to collect, adapt, aggregate, analyse, validate and display data that can be used to make logistics decisions and manage the supply chain.”

What a company wants to achieve by implementing an information system and improve it constantly with the pass of the time is to complete and have its stock updated, make reports more quickly and more qualified, not having a lot of variable data, and finally, use it to take decisions.

So, when a company achieves an efficient information system, it has a lot of advantages, as for example:

  • Logistics functional operations into a process pursuing customer satisfaction at the lowest cost.
  • Facilitates planning and control of the logistical activities related to order fulfilment.
  • Reduction of the requirements of inventory and human resources.
  • Quick response to demand making forecasting redundant.
  • Become a more competitive firm, by making better tactical and strategic decision for the benefits of the firm and its customer.
  • Promotion of systems that link the operations of the firm.
  • Provide customers information regarding product availability, delivery schedules promoting customers service and order status.
  • Interfaces with marketing, financial and manufacturing information systems and provide it to top management.

One example of it is a company called Satrack. This company is leader in satellite monitoring and development of technological solutions. What this company has done is to develop a software known as “Servisat”, which allows to have control above the company cars.

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The process starts when they install a device in each car. Then, they can locate the car through Internet in real time and the device is programmed in order to indicate its location periodically or when something important happens. If the problem is very high, an emergency button emerges to alert the owner to take the necessary actions. On the other hand, if it is only an informative message, it is saved on database to check it later.

In the future, I think that technology will play the most important role on information systems in logistics because nowadays it has already happened. For example, there are some companies that want to implement the use of drones to transport their orders. If it could be possible, it would achieve some amazing facts like leaving the circulation of vehicles to deliver packages in order to reduce the congestion. Also it would help to reduce the high prices that some companies have to assume in some developing countries that don’t have enough infrastructures to support efficient deliveries.

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As a conclusion, I think that it is obvious that in the future companies will achieve better information systems as technology is going develop with the pass of the time, but there are also other aspects like legislation that companies have to confront, as for example in the previous case of drones, and for this reason, it is a slow and long process to implement, but not impossible.

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