What is the role of IS in Logistics? Give examples of IS for Logistics. How do you see the future of IS and Technology in the Logistics area?
Information systems, is the distribution of information to various parts of the company to ensure smooth communication between all departments. This distributes information via technology, or through other sources. The role of technology in information systems has already become, and will become increasingly more important. This involves the use of software to more precisely process and utilise information, as well as computer hardware and applications to more efficiently spread information. This is however not only limited to enhancement on computers, mobile applications are becoming increasingly relevant when we discuss the sharing of information. By enhancing information systems, it supports logistics teams by encouraging ways to reduce costs, and in turn increases a manufacturers competitive advantage. Successful Information technology systems can additionally help to higher service levels, and lower inventory and supply chain costs. The benefits realised from strong information technology systems show the importance of investing in technological systems as it is becoming a prerequisite in surviving in the market, and our ever more technologically demanding world.
Information systems in the supply chain are helpful in regard to coordinating activities. The efficiency of the technology additionally means the cost of the information is reduced. But why have information technology systems become so important?
- Customer service has become increasingly important. Satisfying, pleasing, and serving the customer most effectively and efficiently is an important ways companies stay in business today, as poor service will lead to consumers finding alternative options.
- Accurate and fast information access is crucial for a firm’s ability to reduce inventory and human resources requirements to remain competitive.
- Information systems play a role in strategic planning.
In order to maintain these information systems both the software and hardware need to be managed. This includes the computer’s themselves, while the software includes the entire system and application programme used, which in turn processes transactions, and manages controls and decision making.
Information systems are additionally important in the rising trend of e-commerce. E-commerce is the technologies used to conduct business online, and therefore includes exchanging data through email, electronic fund transfers, electronic publishing, image processing, electronic bulletin boards, and shared databases. Companies must be able to move documents and information smoothly between suppliers and customers. If companies want to remain competitive, and focus on customer service, which is an increasing trend for firms as, the customer demand must be satisfied, firms must employ good information systems.
For example: When examining the clothing brand Mango, IT processes are the basis of improvement in all the company’s processes. Mango’s investment into steadily developing its business management systems and new computer platforms has contributed to the process of business. Mango’s IT team alone is made up of more than 200 people, and the companies technology systems are being continuously renovated to stay as competitive as possible. It is through technology that the company has been able to establish itself as the second largest exporter of the Spanish textile industry.
The in-house technology is essentially part of the logistics and production systems. It based on the company’s integrated logistics of three basic factors including speed information and technology. By focusing on these factors, it is able to reduce delivery times, streamline the distribution of the product, manage orders from each store, control quality, reduce infrastructure costs, and be flexible and adaptable within the company.
The company’s flexibility and adaptability are due to investment into a two way computer application between suppliers and design, and the purchase and quality teams. This allows it to
- Obtain the information on planning processes for the season
- Obtain technical specifications for each of its designs
- Obtain any realisation of any type of consultation and comment by suppliers
The whole production and distributions process is critical to Mango, due to the short time period in which it functions.
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